Southern California Rental Housing Association Rental Advisor Magazine - October 2024

October 2024

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What is Proposition 33

Myths About Earthquakes And Retrofits Dispelled

Legal Questions & Answers

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Page 30

Page 43

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2024 EXECUTIVE OFFICERS President Aiesha Blevins, Greystar

President-Elect Buck Buchanan, Buchanan Property Management Corp.

Vice President Todd Henderson, Independent Owner

MAGAZINE STAFF Publisher Apartment News Publications, Inc. Design & Layout Travis Watson, Production Director Editorial Review Lindsey Lee, Marketing Manager

Secretary Matt Ruane, Liberty Military Housing

ASSOCIATION STAFF

Treasurer Abigail Rex, American Assets Trust, Inc. Legislative Chair Allison Pfister, CPM®, ARM®, Greystar Immediate Past President Lucinda Lilley, CPM®, CAPS®, GRI®, Bridging Influence

2024 DIRECTORS Alex Winborn, H.G. Fenton Company Eric Sutton, Creaser & Warwick, Inc. Jennifer Ford, Douglas Allred Company Kayla Roeder, CPM®, ARM®, Cambridge Management Group, AMO®

Alan Pentico, CAE, Executive Director apentico@socalrha.org 858.278.8070 Olivia Galvez, Director of Business Operations/Operational Advice ogalvez@socalrha.org 858.751.2217 Molly Kirkland, mkirkland@socalrha.org 858.751.2200 Kim Zebroski, kzebroski@socalrha.org 858.751.2220 Lindsey Lee, PCM Digital Marketing, CDMP, Marketing Manager llee@socalrha.org 858.751.2218 Alma Macias, Operational Advisor amacias@socalrha.org 858.278.8070 Evan Prado, Events Coordinator eprado@socalrha.org 858.7521.2214

Kimmi McBryde, Cushman Wakefield Lisa Mason, Baldwin & Sons Lorri Goldmann, Avenue 5 Residential Mark Feinberg, Heinz & Feinberg Patrick Kappel, Kappel Real Estate Scott Ledesma, Generation Contracting & Emergency Services, Inc. Shannon Kelly, Independent Owner

HONORARY LIFE ADVISOR Wesley Harker

Southern California Rental Housing Association Rental Advisor Magazine is published by the San Diego Multi-Housing Corporation (SDMHC) a wholly owned subsidiary of the Southern the author's views and do not necessarily represent those of the Southern California Rental Housing Association or SDMHC. All rights reserved. Materials may not be reproduced or translated without prior written permission by the publisher. Contact the Southern California Rental Housing Association at 858.278.8070 or visit socalrha.org for more information.

Advertising - We do not guarantee or endorse the products or services of any of the advertisers, but and respect for one another. Information provided in the advertisements are the sole responsibility of the advertiser. For concerns please contact the advertiser directly.

Our Address

Southern California Rental Housing Association 9655 Granite Ridge Drive, Suite 200 San Diego, CA 92123 San Diego Office: 858.278.8070 Toll Free: 888.762.7313 Fax: 888.871.5229 socalrha.org

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CONTRIBUTE: Educational articles in Rental Advisor Magazine must be between 500-800 the 10th of the month before publication. Submit to socalrha@aptnewsinc.com.

ADVERTISE: Contact the team at Apartment News Publications, Inc. at 714-893-3971

or email scrha@aptnewsinc.com for advertising information, including rates, production

OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

Volume 66 Number 09 October 2024

APARTMENT NEWS PUBLICATIONS, INC. P.O. Box 3089 Seal Beach, CA 90740 www.aptnewsinc.com (714) 893-3971

PRESIDENT’S MESSAGE: ELECTION COUNTDOWN IS UNDERWAY. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

By Aiesha Blevins

FOUNDER : Don Smeallie, Sr.

EXECUTIVE MESSAGE: REFLECTING ON A SUCCESSFUL 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

By Alan Pentico, CAE

PRESIDENT: Don Smeallie, Jr.

WHAT IS PROPOSITION 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

PRODUCTION DIRECTOR: Travis Watson production@aptnewsinc.com

By Jason Tuvia

CREATIVE DIRECTOR: Sean Buur sean@aptnewsinc.com

LANDLORDS STRUGGLE TO KEEP UP WITH CHANGING CALIFORNIA RULES’. . . . . . . . . . . . . . . . . . . . . . 20

By Alan Pentico, CAE

OFFICE ADMINISTRATOR: Jessica Watson admin@aptnewsinc.com

RUBS CAN HELP YOU FIND SAVINGS... IN THE TRASH!. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

By Livable Content Team Need to update your address or wish to be removed from our mailing list? Please email REGIONAL LEGISLATIVE UPDATE - CHULA VISTA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 us at admin@aptnewsinc.com

By Southern California Rental Housing Association

FEATURED COLUMNS:

MYTHS ABOUT EARTHQUAKES AND RETROFITS DISPELLED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

By Ali Sahabi NAVIGATE UNCERTAINTY: ECONOMIC INSIGHTS FOR PROPERTY MANAGERS . . . . . . . . . . . . . . . . . . . . 34

A Flawed Initiative That Will Make the Housing Shortage Worse Ad paid for by Issues PAC of Apartment Association of Greater Los Angeles – No on 33

What is Proposition 33

by Jason Tuvia

Pg. 16

By Max Glassburg LEGAL QUESTIONS & ANSWERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

By Kimball, Tirey & St. John LLP REGIONAL LEGISLATIVE UPDATE - TOWN HALL RECAP - NO ON PROP 33. . . . . . . . . . . . . . . . . . . . . . . . . 46

By Mercedes Shaffer NAVIGATING APARTMENT INSURANCE NON-RENEWALS.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

By Cameron Stewart CALENDAR OF UPCOMING COURSES & EVENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 PROPERTY MANAGEMENT DIRECTORY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Myths About Earthquakes And Retrofits Dispelled

by Ali Sahabi Pg. 30

SUPPLIER MEMBER DIRECTORY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 ADVERTISING DIRECTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Apartment Management Magazine is published monthly by Apartment News Publications, Inc. at 15502 Graham Street, Huntington Beach, CA 92649. Subscription Rate: $24.00/year with zip codes beginning with 900-935, (outside of L.A. & Orange counties $72.00/year.). The publisher and Apartment News Publications Inc. assume no responsibility for opinions expressed in articles appearing under an author's name. The contents of this publication may not be reproduced without written permission from the publisher. Bulk rate postage is paid at Bell Post Office BMC, 5555 Bandini, Bell, CA 90201.

For Advertising Information: 1-800-931-6666 SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

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Make Sure You’re Registered to Vote for the Upcoming Election! www.sos.ca.gov/elections October 21, 2024 Last day to register to vote for the General Election on November 5.

All California active registered voters will receive a vote-by-mail ballot for the November 5, 2024, General Election.

Your county elections office will begin mailing ballots by October 7, 2024.

October 8, 2024 Ballot drop-off locations open.

Vote-by-mail ballots can be returned by mail, at a drop-off location, or your county elections office.

October 26, 2024 Vote centers open for early in-person voting in all Voter’s Choice Act counties.

November 5, 2024 Election Day! Vote-by-mail ballots must be postmarked on or before Election Day and received by November 12, 2024.

SOCALRHA.ORG | 858.278.8070

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OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

Aiesha Blevins 2024 President Southern California Rental Housing Association

T

President’s Message: Election Countdown is Underway

he countdown to the 2024 election is underway. If you haven’t already done so, now is the time to confirm your voter profile and ensure your address and information is current.

Whether you need to register to vote or update your information, you can find statewide resources for voters at www.sos. ca.gov/electionsor by calling (800) 345-VOTE. Key Dates for the 2024 General Election Include: •

10/08 - Ballot Drop-Off Locations Open

• 10/21 - Last Day to Register to Vote in the General Election on 11/05 •

10/26 - Early, In-Person Voting Begins

•

11/05 - General Election

While every election is important, rental housing professionals must get out the vote to defeat Proposition 33 this year. Southern California Rental Housing Association has hosted numerous town halls to share the possible impacts of Proposition 33 for rental housing providers, and our communities as a whole. We thank everyone who attended these events and are deeply grateful for all the guest speakers who generously shared their time and expertise with our members.

and Christine La Marca, CalRHA and SCRHA Past President, with moderator Molly Kirkland, SCRHA Director of Public Affairs.

Before you head to the polls, be sure to review the SCRHA endorsements so that you can vote for the candidates who best support the rental housing industry. While we tirelessly work around the year to represent our members at all levels of government, this election is your opportunity to make your voice heard. Your vote for candidates who support the industry sends a strong message that rental housing providers are essential to thriving communities.

Our investment and very livelihoods are on the line with this election, and we cannot afford to let Proposition 33 erase our Costa-Hawkins protections, opening the door to draconian rental housing measures enacted by local jurisdictions. Thank you for your continued support, and we’ll see you at the polls!

If you missed the Town Hall on September 13, be sure to read the detailed recap on page 29. We were honored to have a strong lineup of speakers including Jordan Marks, San Diego County Assessor-RecorderClerk, Rich D’Ascoli, CEO of the Pacific Southwest Association of Realtors®, Lori Holt Pfeiler, CEO of the Building Industry Association of San Diego, SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

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NOVEMBER 1, 2024 | 5:30 PM - 9:30 PM SYCUAN CASINO RESORT Join us for a night of celebration and inspiration at the 30th Annual Mark of Excellence Awards Ceremony! Register early to secure your tickets at the best rate. You won't want to miss your chance to be part of an unforgettable evening honoring outstanding achievements of the rental housing industry.

Registration from September 16 - October 15 Individual: $250 Members | $225 Non-Members Table of 10: $2,500 Members | $2,750 Non-Members Show Your Support Sponsoring Mark of Excellence elevates your brand visibility in the rental housing community and provides unparalleled access to industry leaders and decisionmakers.

Expected Attendance: ~600 Event Historically Sells Out EVENT SPONSORS

ASSOCIATIONWIDE SPONSORS Gold Sponsor

Platinum Sponsors

Silver Sponsor

Diamond Sponsorship $8,500 SCRHA Members | $10,500 Non-Members One Table of 10 Two Reps in the Awards Presentation Script Early Access to SCRHA Room Block Complimentary Group Photo Ruby Sponsorship $6,500 SCRHA Members | $7,500 Non-Members Six (6) Complimentary Tickets Special Recognition at No-Host Bars Sapphire Sponsorship $5,500 SCRHA Members | $6,500 Non-Members Four (4) Complimentary Tickets Emerald Sponsorship $3,250 SCRHA Members | $4,000 Non-Members Three (3) Complimentary Tickets Crystal Sponsorship $1,500 SCRHA Members | $2,500 Non-Members Two (2) Complimentary Tickets Pearl Sponsorship $1,000 SCRHA Members | $1,500 Non-Members Two (2) Complimentary Tickets

www.socalrha.org | 858.278.8070 8

OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

Alan Pentico, CAE Executive Director Southern California Rental Housing Association

I

Executive Director’s Message: Reflecting on a Successful 2024

t’s hard to believe that we are in the fourth quarter of 2024 and wrapping up an eventful year at the Association. Now is the time of year when we reflect on our success and plan for the next year. As I prepare to give my annual report at the Meeting of the Membership on October 16, I’m very proud of everything that SCRHA and our members have accomplished this year.

Going into this year, we knew that it would be filled with challenges posed by local efforts to pass and/or expand Tenant Protection Ordinances (TPO) and the statewide effort to pass Proposition 33, which would open the door to expanded rent control throughout the state, and not to mention the countless bills that moved through the Legislature this year.

Our advocates and lobbyists stayed busy to make sure that your voice, the voice of the rental housing community, was heard at all levels of the government.

These efforts were often successful thanks to the swift action of our members, who would take action when alerts were shared. Thank you to everyone who took the time to respond to an action alert, attend a meeting, or contact your representatives to share your concerns and your perspective as a housing provider in Southern California.

Even though the Legislative session has ended and the election is less than a month away, we’re not slowing down at SCRHA. If you haven’t made plans to join us on October 16, I hope you can join us for the annual Meeting of the Membership. During the meeting, members will vote on the 2025 Slate of Officers and a detailed report of the state of the Association.

Following the meeting, we’ll have a luncheon where attendees will hear the latest on Proposition 33 and the fight against the spread of Rent Control from

SCRHA’s Director of Public Affairs, Molly Kirkland, as well as a “State of Property Insurance” from Cameron Stewart of Crest Insurance Group, who will share insights on the insurance market and what steps you can take now to protect your property.

If you’re looking for more insights into the market, the annual Apartment Perspective is on October 17, and our panelists will help you discover opportunities during a market correction. This event has historically sold out, so visit socalrha.org to register for this SCHOLARSHIP PROGRAM popular event.

Support leaders in rental housi While the October calendar is full, we’re very excited by contributing to our Rental to start the month of November with the 30th annual Housing Scholarship program.

Mark of Excellence Awards Ceremony at Sycuan Casino Resort.

Your donation to the Rental Housing Scholarship is an Remember to check out our endorsements and vote! investment in the future of our We need to defeat Proposition 33 and send a clear industry. message to proponents of rent control.

DONATE AT SOCALRHA.OR

BROKER PROGRAM Helping a client close on their first rental property?

Get them started out right with a gift membership to the Southern California Rental Housing Association.

CALL 858.278.8070 or EMAIL MEMBERSHIP@ SOCALRHA.ORG SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

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CELEBRATING CELEBRATING

Entrada | Greystar WASH Multifamily Laundry Systems El Pedregal Cirrus Mgmt.

Sun An Sea| Property Alliance Investment Corp.

Limoncello Edward R. Mateer Company Hitching Post Motels, Inc. Judith Folsom Company Whalen Properties Chris Espineli Company Jack Zolezzi Trust Au Vernon and Judith Laura Waligorski Company GTF Properties CULTRWebber 1, LP Company Donna Professional Real Estate Management John Company Gary Belanich Gentile Company Creaser & Warwick, Inc. Josie Rhodes Company R. A. Limited Snyder Partnership Properties, Inc. DNC 40th Street | R.A. Snyder Properties The Kevane Company, Inc. 4110-4114 1/2 Arizona Street| R. A. Snyder Properties Elinor van den R. Akker Company 4768 Arizona| A. Snyder Properties, Inc. 7th Investment Avenue| R.A. Snyder Properties, RG Real Estate Services Inc. 8th Avenue| Court| R. A. Snyder Properties Caesar Oriol Spanish Company Alabama Street| R. A. Snyder Properties Inc. Fred and Shirley Salzer Apache Village | R.A.Snyder Properties Fleetwood Properties Balboa Plaza | R.A. Snyder Properties Campus Avenue| R. A. Snyder Properties, Inc. Rolf Steeve Company Canyon Breeze| A. Snyder Properties, Inc. Kenneth RundlettR.Company Capri Villa | R. A. Snyder Properties, Inc. Laurence and Carolyn Casa Escondida| R. A.Kaiser Snyder Properties, Inc. Errol Tonsky Company Chateau Vue| R. A. Snyder Properties, Inc. Cleveland House| R. A. Snyder Properties, Inc. Gregory Robinson Company Colonial House| R. A. Snyder Properties, Inc. Richard Hancock Company Hamilton Street (CSP)| R.A. Snyder Properties Inc. Sierra Properties LLC - Paul Hasley Inc. HilltopMar Terrace| R. A.Snyder Properties, Lincoln Heights| R. A. Snyder Properties, Inc. Mary Ann Tarantino Company LindaMoore, Vista Village| Terry CCIM, R.A. Inc. Snyder Properties, Inc. London Terrace| R. A. Snyder Properties, Inc. Jerry Conway Company Monterey Apartments| R. A. Snyder Properties, Inc. IHA OakPartners Creek| R.Inc. A. Snyder Properties, Inc. Oliver IMalik |R. A.Company Snyder Properties, Inc. Jeffrey Oliver II |R. A./Snyder Properties, Inc. G. Beit-Ishoo SeaDate Park Blvd & Polk Ave| R. A. Snyder Properties, Inc. George and Celida Haddad Pennsylvania Avenue| R. A. Snyder Properties, Inc. Al Smithson Company Shadow Glen| R. A. Snyder Properties, Inc Summit Family Park| R.Trust A. Snyder Properties, Inc. Longley - Nancy Longley Trustee Taft Avenue | R.A. Snyder Properties Waltwood Properties The Village at Rancho San Diego | R. A. Snyder Properties, Inc. Marilynn Nemeroff Company

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CELEBRATING

Nancy Mullins Company NLJ, LLC

Brothers II

1997 1998 1998

an ANNIVERSARY This Month an ANNIVERSARY This Month 10+ years of membership 10+ years of membership

Yvonne Coover-Stone Company Union & Juniper | R. A. Snyder Wilma H. Healey Company Utah Street Apartments | R.A. Snyder Properties Vista Del Mar | R.A. Snyder Properties T1 PropertiesE West Street | R.A. Snyder Properties Legar Management Windsong Apartments | R.A. Snyder Properties M. C. Contracting Aspen Park | R. A.Service Snyder Josephine Company Don RiggsCree Company 600 Front Investments, L. P. RJW Properties, Inc. Judy Simeroth Company Laura Sperry Company ABB Management Wakeland Housing Wintercrest Village & Development

1999 1988 1999 1988 1988 1999 1988 2000 1988 2000 1988 2001 1990 1992 2002 1993 2003 1993 2003 1993

an ANNIVERSARY This Month

10+ years of membership

ATI Restoration, LLC Evelyn Shea Company Susan Tucker Company David Olson Company SEA Property Management Co. AMO Muraoka Enterprises Inc. Kennedy Electric People Others Prop. Mgmt.

RichardHelping Schneider Company Megan Court Law Offices ofApartments Andrew C. Laubach OnyxProperties| Property Management Walz Fortuna Investment Group J & C Carpet Company Mark Marshall Company Rodgers Professional Service Elizabeth Dammassa-Uglik Company Lee Carver Company Debra E. AdamsPeasquitos Point Apts.

REC Properties| Hammett Properties Dennis & Tina Daneri Robert Curtis Company Mira Bella Apartments Albert C. Myrick, Jr. | Simpson Property Group BettyYacoubian Star Company Araz Company Keith Mulfinger Company Sherry Bird Company Francisco Real Company Sciuto Properties Barbara Immonen Company Tom Sofi Brady PowayCompany | Cushman & Wakefield Kenneth W.Estate Ralph Company Axiom Real Lagarda Enterprises, Barry Treahy CompanyLLC Barry S. Spooner Company Dennis and Marian Pierce Personnel Service Cleanology Housekeeping Jesus andContracting Yolanda Arroyo McMillin Services Todd A. Brisco & Associates, APC Betty Bark Company Delta Southern Properties Corp.

David M. Pierce Vivian Rich Company Tamra Fountas LLC Green Fuller Acre Properties, Kathryn Nielsen Company Buchanan Property Management Corp.

Vincent Gonzalez Company Brian Steer Company Lee Cooley Company Eagle Property Management Gisella Falossi Arbors at California Oaks Apartment Homes

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JDS Security

2014

SatisFacts Research

2014

Silverado Apartments (RCMI)

2014

account, or were taken under new ownership, the member will not appear here. If you feel that your membership should be in this list and is not, please account, orpublications were taken under new ownership, the member will not appear here. If you feel that your membership should be in this list and is not, please contact the department at publications@socalrha.org contact the publications department at publications@socalrha.org account, or were taken under new ownership, the member will not appear here. If you feel that your membership should be in this list and is not, please contact the publications department at publications@socalrha.org

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OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

newmanwindows

LICENSE #570472 SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

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Rarefied Air Industry Partner of the Year - Individual Erin Schindel-Kuehn, Legacy Apartment Staffing Ramona Chavez, Legacy Apartment Staffing Leasing Professional of the Year 1-300 Units Ali Fernandez, American Assets Trust, Inc. Ashleigh Huntington, H.G. Fenton Company Celeste Hernandez, Buchanan Property Management Corp.

Isabel Torres, Greystar Ismael Rivera, Greystar

Congratulations to all of our 2024 Mark of Excellence nominees. You are the true “Mark of Excellence” in our industry, and we are proud to recognize your accomplishments.

Assistant Property Manager of the Year 1-100 Units Brooke Nielsen, Buchanan Property Management Corp.

Chris Grabski, Sudberry Properties, Inc. Ebony Rabsatts, H.G. Fenton Company Georgia Proskauer, Sudberry Properties, Inc. Isabella Ruiz, H.G. Fenton Company Joseph Padilla, Greystar Lauryn Farris, H.G. Fenton Company Michelle Menne, American Assets Trust, Inc. Mike Martin, American Assets Trust, Inc. Paige Higgins, H.G. Fenton Company Raja Deva, Greystar Reese Perry, Greystar Vanessa Hernandez, Sudberry Properties, Inc. Assistant Property Manager of the Year 101-300 Units Anjanette Corso, Greystar Annabelle Cloutier, Greystar Annamarie Rodriguez, Greystar Bibianny Pernas, Greystar Casey Gonzales, Cameron Brothers Company LLC Christopher Stalter, H.G. Fenton Company Ebony Rabsatt, H.G. Fenton Company Ellie Espudo, Greystar Eric Lindsey, Greystar Isabelle Martinez, Greystar Jacelyn Cabunoc, Fairfield Residential Company LLC Kayla Huntley, Cameron Brothers Company LLC Kelly Engbring, H.G. Fenton Company Lupita Durazo, Sunrise Management Company AMO Matt Gonzalez, Greystar Michelle Arce, Greystar Nicole Green, Sunrise Management Company AMO Toni Hoyt, H.G. Fenton Company Tyler Lange, Greystar Victor Rivera, FPI Management Whisper Williams, Greystar Community Relations Manager of the Year 1-300 Units Addie Pinomesa, Urban Coast Properties, Inc. Emma Risdon, Sudberry Properties, Inc. Jasmine Ruiz, Sudberry Properties, Inc. Industry Partner of the Year - Company Bald Eagle Security Services, Inc. Cox Legacy Apartment Staffing

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Leasing Professional of the Year 101-300 Units Alexandria Peralta, Hub | Sudberry Properties Braden Ingraham, H.G. Fenton Company Catalina Martinez, Greystar Cindy Gonzalez, Fairfield Residential Company LLC Claudia Bryant, Greystar Cristina Noor, Cameron Brothers Company LLC Dale `Hopkins, H.G. Fenton Company Daniel Vidal, Greystar Esperanza Ojeda, H.G. Fenton Company Gabriel Hernandez, H.G. Fenton Company Gabriella Espinoza, H.G. Fenton Company Hayley Lewis, Greystar Jahnelle Washington, Greystar Lesly Juarez, Fairfield Residential Company LLC Marilyn Lopez, Sunrise Management Company AMO Nick Rock, H.G. Fenton Company Stacia Smith, H.G. Fenton Company Taylor David, Flats, LLC. Thomas Raftis, Greystar Leasing Professional of the Year 301+ Units Ancio Robinson, H.G. Fenton Company Anni Isaacs, H.G. Fenton Company Annie Flores, Greystar Brad Campbell, Sudberry Properties, Inc. Brandon Jackson, Sudberry Properties, Inc. Cassidy Brison, FPI Management Devin Fragoso, Urban Coast Properties, Inc. Erik Rimmer, Sudberry Properties, Inc. Hever Arrieta, H.G. Fenton Company James Schwartz, H.G. Fenton Company Jesus Rivera, H.G. Fenton Company Julian McKerley, H.G. Fenton Company Libni Lam, American Assets Trust, Inc. Luis Quintana, H.G. Fenton Company Maxime Clabaut, H.G. Fenton Company Nikko Bernardo, Greystar Stephen Murphy, H.G. Fenton Company Tess Barbeau, Greystar Tony Garcia, Greystar Maintenance Supervisor of the Year 1-300 Units Adrian Arroyo, Sudberry Properties, Inc. Alex Brito, Flats LLC Alex Tellez, Greystar Andres Angel, Whittington Property Management Inc. Andres Ledesma, Buchanan Property Management Corp.

Beni Teran, H.G. Fenton Company Carlos Mora, Greystar Danny Escamilla, Greystar David Daniels, Villa Del Mar | Sunrise David Thorne, Skye Apartments | Fairfield Residential Edwin Bahena, H.G. Fenton Company Fernando Nieblas, Sunrise Management Company AMO Francisco Tapia, H.G. Fenton Company Gustavo Orihuela, H.G. Fenton Company Israel Segura Del Rincon, H.G. Fenton Company Javier Munos, Greystar Jonathan Villa, American Assets Trust, Inc. Jose Cobos, H.G. Fenton Company

OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

Jose Piza, H.G. Fenton Company Juan Carlos Flores, Sunrise Management Company AMO Juan Romero, Greystar Junior Padilla, Cameron Brothers Company LLC Luis Mas Ramirez, Greystar MIchael Giordano, Greystar Rick Naranjo, Greystar Roger Mendoza, H.G. Fenton Company Terry Cook, Greystar Travis Price, FPI Management Maintenance Supervisor of the Year 301+ Units Andres Mendoza, Sudberry Properties, Inc. Brian Rapisardi, Greystar Carlos Sanchez, H.G. Fenton Company Daniel Garcia, American Assets Trust, Inc. Gabriel Guerrero, H.G. Fenton Company Gamaliel Rendon, H.G. Fenton Company Hildefonso Velasquez, Sudberry Properties, Inc. Jason Mungarro, Greystar Jorge Granados, Greystar Mario Arzate, H.G. Fenton Company Narciso Corona, Sudberry Properties, Inc. Omar Arzate, H.G. Fenton Company Tony Price, Greystar Victor Lora, American Assets Trust, Inc. Maintenance Tech of the Year 1-300 Units Adrian Martinez, Sudberry Properties, Inc. Alex Kerr, Cameron Brothers Company LLC Alexey Acosta, Fairfield Residential Company LLC Alfonso Romero, American Assets Trust, Inc. Andres Munos, H.G. Fenton Company Anthony Guzman, H.G. Fenton Company Armando Aguirre, FPI Management Brian Cisneros, Cameron Brothers Company LLC Cristian Hernandez, Buchanan Property Management Corp.

Cristobal Sanchez Barron, FPI Management Edward Harmon, Greystar Eleazar Varela, Cameron Brothers Company LLC Erik Ramirez, H.G. Fenton Company Gerardo Paz, FPI Management Greg Miller, H.G. Fenton Company Jeton Breznica, Greystar Jose Godinez, Sunrise Management Company AMO Julio Bernal, Whittington Property Management Inc. Manuel Lugo, Greystar Matt Young, H.G. Fenton Company Michael Cardosa, Fairfield Residential Company LLC Miguel Pamatz, FPI Management Oscar Verdugo, Sunrise Management Company AMO Osiel Aguilar Esiquio, Greystar Priscilla Manriquez, H.G. Fenton Company Rick Gonzalez, The Warwick | Sunrise Saul Correa, H.G. Fenton Company Tomas Duenas, Greystar Maintenance Tech of the Year 301+ Units Alan Cardenas, Sudberry Properties, Inc. Alvaro Modonado, Greystar Cesar Hernandez, American Assets Trust, Inc. Francisco Godinez, H.G. Fenton Company Guillermo Chavez, Sudberry Properties, Inc. Guillermo Lopez Roset, American Assets Trust, Inc. Isaac Barraza, Sudberry Properties, Inc. Jesus Lopez, Greystar Johnny Harbort, H.G. Fenton Company Jose “Francisco” De La Torre, H.G. Fenton Company Jose (JC) L Chavez, H.G. Fenton Company Jose Guerrero, H.G. Fenton Company Juan Vargas, H.G. Fenton Company Justin Leneabe, Cameron Brothers Company LLC Kevin Villa, Sudberry Properties, Inc. Marco Rodriguez, H.G. Fenton Company

Michael Razon, Greystar Mike Fiega, American Assets Trust, Inc. Rafael Quintero, H.G. Fenton Company Reinaldo Rosales, Cameron Brothers Company LLC Rodolfo (Rudy) Arzate, Sudberry Properties, Inc. Ron Lawson, H.G. Fenton Company Salvador Gomez, H.G. Fenton Company Victor Guerrero, H.G. Fenton Company Multi-Site Manager of the Year 1-300 Units Danielle Olvera, FPI Management Ingrid Mallory, Greystar Jamika Hunt, Cameron Brothers Company LLC Jessica Rodriguez, Sunrise Management Company AMO Kalani Brinkoetter, H. G. Fenton Company Kimberly Hughes, FPI Management Lisa Collins, FPI Management Maurine Jimenez, FPI Management William Fagan, Greystar Multi-Site Manager of the Year 301+ Units Avonte King-Henry, Greystar Isaac Sterman, H.G. Fenton Company Jamie Swiech, Greystar Johnny Montes, Cameron Brothers Company LLC NextGen Award Alicia Banister, Flats LLC Alma Trejo, Sunrise Management Company AMO Amber McWhirter-Griffith, Farmers Insurance Anthony Paxton, Sunrise Management Company AMO Avonte King-Henry, Greystar Blair Madrid, American Assets Trust, Inc. Cadence Noble, Sunrise Management Company AMO David Valdez, Sunrise Management Company AMO Gabriela Diaz, Sunrise Management Company AMO Jazmin Torres Flores, Sunrise Management Company AMO Jessica Rodriguez, Sunrise Management Company AMO Jon Perea, Sunrise Management Company AMO Tyler Bradshaw, Sunrise Management Company AMO Property Manager of the Year 101-300 Units Aldo Aviles, FPI Management Alejandra Angel, Whittington Property Management Inc. Alicia Banister, Flats, LLC Alison Herburger, Greystar Alma Trejo, Sunrise Management Company AMO Anabel Jaimes, FPI Management Andii Gutsch, H.G. Fenton Company Anna Lui, Sunrise Management Company AMO Ashley Romo, Sunrise Management Company AMO Bradley Boleman, Sunrise Management Company AMO Brian Braden, Greystar Cadence Noble, Sunrise Management Company AMO Caroline Rendon, H.G. Fenton Company Chelsey Banks, H.G. Fenton Company Dannika Condon, H.G. Fenton Company David Valdez, Sunrise Management Company AMO Gabriela Diaz, Sunrise Management Company AMO Heather Ramirez, Greystar Jackie Casaletto, H.G. Fenton Company Jasmine Mech, Greystar Jazmin Torres Flores, Sunrise Management Company AMO Jennifer Willoughby, Greystar Jensine Rincon, Greystar Jessica Vazquez, Fairfield Residential Jessie Lucero, American Assets Trust, Inc. Jessie Lucro, American Assets Trust, Inc. Jon Perea, Sunrise Management Company AMO Jorge J Gomez, Bell Partners, Inc. Justy Tevid, Greystar Kale Simpson, Whittington Property Management Inc. Karla Carrillo, Sunrise Management Company AMO

Katie Harney, FPI Management Kristine Smeaton, Sunrise Management Company AMO Laura Garcia, Greystar Lenaya Bailes, Cameron Brothers Company LLC Lindsay Nydam, Greystar Lizeth Corona, Greystar Marie Berg, Sunrise Management Company AMO Mitchell Benbrook, H.G. Fenton Company Nelly Hernandez, Sunrise Management Company AMO Patricia Smith, Cameron Brothers Company LLC Sandra Villa, Sunrise Management Company AMO Shannel Sotelo, Greystar Shannel Sotelo, Greystar Stephanie Sanchez, Sunrise Management Company AMO Terry Best, Greystar Todd Hofeditz, Greystar Xihomara Gaytan, Greystar Zoe Poissot, H.G. Fenton Company Property Manager of the Year 301+ Units Alicia Banister, Flats LLC Allissa Gordan, Greystar Amanda Benelli, Greystar Andrea Alexander, Greystar Anna Lui, Sunrise Management Company AMO April Pelfrey, FPI Management Aquatera, H.G. Fenton Company Array La Mesa, Greystar Ashley Romo, Sunrise Management Company AMO BLVD, H.G. Fenton Company Candance Hollinbeck, H.G. Fenton Company Carolina Villavicencio, Sunrise Management Company AMO Chris Ramirez, H.G. Fenton Company CreekView, H.G. Fenton Company David Valdez, Sunrise Management Company AMO Evening Creek, H.G. Fenton Company Genevieve Gundogar, Sudberry Properties, Inc. Jack Gilligan, Urban Coast Properties, Inc. Jamika Hunt, Cameron Brothers Company LLC Jessica Rodriguez, Sunrise Management Company AMO Jose Soto, H.G. Fenton Company Justy Tevid, Greystar Lenaya Bailes, Cameron Brothers Company LLC Michael Brown, Greystar Osiris Gomez Romero, Greystar Patricia Smith, Cameron Brothers Company LLC Phoebe Lyons, Urban Coast Properties, Inc. Rachel Mello, Cameron Brothers Company LLC Rachelle Merlo, Sudberry Properties, Inc. Rana Auday, FPI Management Regina Whitesell, Sunrise Management Company AMO River Front, H.G. Fenton Company Scripps Landing, H.G. Fenton Company Seagate, H.G. Fenton Company Solterra, H.G. Fenton Company Tierrasanta Ridge, H.G. Fenton Company Tre Vuch, American Assets Trust, Inc. Yesenia Escalante, FPI Management

Silverado Apartments, Whittington Property Management Inc. The Warwick, Sunrise Management Company AMO Town Center Villa, Sunrise Management Company AMO TRU Bankers Hill, H.G. Fenton Company Urbana Rental Flats, H.G. Fenton Company Property of the Year 101-300 Units Skye Apartments, Fairfield Residential Property of the Year 301+ Units Cameron’s Mobile Estates, Cameron Brothers Company LLC Casoleil Living, Greystar Circa 37, Sudberry Properties, Inc. Club River Run, H.G. Fenton Company El Dorado Hills, H.G. Fenton Company Pacific Ridge Apartments, American Assets Trust, Inc. Portofino, H.G. Fenton Company VICI, H.G. Fenton Company Repositioned Property of the Year 1-300 Units Ascend 2300, Greystar Cedar Shores, Sunrise Management Company AMO Imperial Beach Gardens, American Assets Trust, Inc. Point Loma Palms, Sunrise Management Company AMO Softwind Point Apartments, Greystar Property Management Company of the Year American Assets Trust, Inc. Cameron Brothers Company LLC H.G. Fenton Company Sudberry Properties, Inc. Sunrise Management Company AMO Urban Coast Properties, Inc.

Join the Celebration!

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Property of the Year 1-29 Units Loma 21, American Assets Trust, Inc. Santa Fe Park RV Resort, American Assets Trust, Inc. Property of the Year 30-100 Units 2911 Adams, Greystar Bella Del Mar, H.G. Fenton Company Celsius Apartments, Cameron Brothers Company LLC Creekwood Villas, Sunrise Management Company AMO EVOC, H.G. Fenton Company Greentree Fountain Apartments, Whittington Property Management Inc. Haven76, Greystar Bella Vista Apartments, Sunrise Management Company AMO SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

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WHAT IS PROPOSITION 33: JUSTICE FOR RENTERS ACT??

by Jason Tuvia, Senior Managing Director Investments at Marcus & Millichap FOR THE THIRD TIME IN THE PAST DECADE, CALIFORNIA VOTERS WILL VOTE DURING THE GENERAL ELECTION ON A REPEAL OF COSTAHAWKINS, TRIGGERING VACANCY CONTROL ON ALL APARTMENTS IN SELECT CITIES SUCH AS LOS ANGELES.

P

roposition 33, the so-called “Justice for Renters Act” is just 23 words: “The state may not limit the right of any city, county, or city and county to maintain, enact or expand residential rent control.” It would remove California’s statewide rent control ban and give local communities the right to stabilize rents and make apartments more affordable for low-income and middleincome renters.”

and newly constructed rental properties from rent control and allows landlords to charge market rate rents for units upon tenant turnover (known as “vacancy de-control”).

Achieving market rate rent upon a tenant vacancy is absolutely essential to encourage investment in housing, to allow rental property owners to keep pace with ever-increasing costs, and to maintain a balance in the housing market.

The “Justice for Renters Act” threatens to introduce vacancy control, thereby capping rents after a tenant vacates. This would lead to a decrease in property values and would disincentivize future investment in property improvements and maintenance, and ultimately reduce the available supply of rental housing as investors can no longer keep up with rising costs. In effect, Proposition 33 is a “bankruptcy bill” that would force many rental property owners out of business.

VOTE NO ON

PROP

This very vague language put together by the AIDS Healthcare Foundation which owns very poorly run apartments with countless housing violations in Los Angeles. The inaptly named, proposed “Justice for Renters Act” will be on the November 2024 ballot, and if passed, it would overturn the Costa-Hawkins Rental Housing Act of 1995 (“Costa Hawkins”), an important state law that exempts certain types of properties from local rent control and prevents local governments from imposing price controls on vacant units.

Ironically, Proposition 33, does not require or guarantee that even one new unit of housing will be built upon it’s passage.

wed Initiative That Will Make e Housing Shortage Worse In California, Proposition 33 has sparked significant concern among owners of rental housing throughout the state. Originally enacted in 1995, Costa-Hawkins is currently the standard across California’s rental housing policy. It exempts single-family, condominium

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CASE IN POINT: NEW YORK CITY

New York City works well as a case study. Vacancy control was passed in 2019, capping allowable rental rates upon tenant turnover to 20% of the previous tenant’s rent. This is now widely acknowledged as the main cause for current reduction in available and quality of the city’s housing supply.

Five years later New York City has a vacancy rate of 1.4%, and estimated 40,000 units deliberately Please turn to page

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SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

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Continued from page

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vacant as the landlord is unable to earn a fair return on their investment in renovating those vacant units. One notable Multi-housing News article from 2020 discussed the consequences of vacancy control, demonstrating that it alters the investment landscape by shifting investor sentiment from property appreciation to in-place cash flow, causing a significant drop in property prices as the valueadd component diminishes. This shift would have a profound impact on California’s housing market, mirroring the consequences faced in New York. In New York City, rental property values have declined as much as approximately 40% as a direct result of vacancy controls.

The difference from the last time the vacancy control vote was on the ballot in 2018 (Proposition 10) and 2020 (Proposition 21) has been a significant voter shift in California to the far left focusing on social justice issues. Liberal cities in California such as Los Angeles, Santa Monica, and West Hollywood have already decided they will institute vacancy control should proposition 33 pass this November.

Los Angeles apartment buildings historically have sold at cap rates less than the rest of the country as investors priced in rental “upside potential” and willingness to take a lower initial return. If proposition 33 passes, cap rates will go up significantly and a deterioration in value in the 15% - 35% range depending on how close the individual property rents are to market rents. Lenders will also pull back lending throughout the state as bank owned foreclosures will increase.

NOW, LET’S TAKE LOS ANGELES AS AN EXAMPLE Here is an example - Assume a 10-unit apartment building in Los Angeles: • Rents: $1,000 on average • Net Operating Income: $72,000 • Estimated Value: $1,371,000 (Based on a 5.25% cap rate) Should Proposition 33 pass this November, rental upside would be meaningless so the cap rate would need to be above the cost of debt and well above treasury yields to justify risk, so let’s call it a 6.75% cap rate. The value overnight would change to

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OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

$1,066,667. The building value just dropped 22%.

The main issue is with “flat top-level” revenue of rents along with increased expenses through higher utilities costs, plus doubling or tripling of insurance that continues to lower net operating income, is that this will force some owners to sell at a large loss.

The sad part of a Costa-Hawkins repeal is no one really benefits. For example, if a tenant moves out of an apartment rented for $800, the new allowable rent may be $875. However that rental unit needs to be fully renovated and may cost at a minimum $30,000.

Obviously, no landlord will fork over $30,000 to earn a miniscule $900 increase in annual rent. The landlord, like many landlords in New York City, will keep that unit vacant because they just cannot afford to renovate the very dated unit. This will mean the housing stock will decrease, causing market rents for units that don’t fall under rent control to skyrocket and, therefore, hurting not only tenants that need affordable housing but also the smaller landlord that cannot afford to keep the apartment building since they are not earning a return on their investment and may even be operating at a loss!

CONCLUDING THOUGHTS The long-term effects on Proposition 33 are quite obvious for anyone who has studied economics.

Institutional owners will “redline” Los Angeles and other liberal cities in California that enact vacancy control which will create less new units. Units will deliberately be held vacant after long term renters vacate creating an even smaller housing stock when we desperately need many more units throughout Los Angeles and the state.

Please contribute to the opposition campaign against Proposition 33 at socalrha.info/scrhaissuespac.

You can also mail a check payable to the SCRHA Issues PAC at Southern California Rental Housing Association, 9655 Granite Ridge Drive, Suite 200, San Diego, CA 92123.

Jason Tuvia is Senior Managing Director Investments at Marcus & Millichap in Encino, California. He has received multiple awards at the firm including the National Achievement Award (NAA), which is awarded to the top agents in the firm. Mr. Tuvia has closed over $1 billion in commercial real estate sales over his career. He graduated from California State University at Northridge with dual degrees in Finance and Real Estate. For more information, contact Jason at (818) 212-2735 or jason. tuvia@marcusmillichap.com

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19

LANDLORDS STRUGGLE TO KEEP UP WITH CHANGING CALIFORNIA RULES

I

by Alan Pentico, CAE

can’t help but laugh when I see videos and memes about “getting rich with real estate.”

Whether it’s on Instagram, TikTok or X, it’s a common topic: How homeowners can supposedly make easy money by renting out an accessory dwelling ynit, one half of a duplex, a room or even a garage.

In recent years, because of an inadequate supply of homes, the rental market has become more competitive — a significant challenge for Californians.

As living costs soar, legislative bodies are stepping forward with laws aimed at regulating the rental process, preventing tenant displacement, and ensuring healthier living conditions.

I’ve even heard rentals described as a “passive” investment — meaning there’s not much work involved.

These well-intentioned legislative efforts are changing the landscape not just for renters but also for landlords, who play a vital role as housing providers within the community.

This is 100% wrong.

Let’s get one thing straight: managing rental properties requires work, whether you own just one or two properties or hundreds. Landscaping the grounds and maintaining buildings are just a few components of the job. The biggest challenge, though, is compliance with ever-changing rules — and in California, we have many laws.

I have some news for anyone who plans to rent out a home in California: If you are not actively engaged and following the recent legislation, you are probably breaking the law.

That’s because the rules and laws are changing rapidly.

As one example, if you have a rental application form you used last year, it might be outdated by now due to recent laws at the state and local level.

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Landlords are working hard to adapt and comply, but especially for smaller property owners, it’s not an easy task.

Here’s one example. A local property manager recently took over management of a San Diego rental home property. Once she received copies of the leases and other paperwork, the manager discovered a big problem — the property was in violation of San Diego’s Tenant Protection Ordinance that went into effect in 2023. The tenants had not been served the mandatory notification and 16-page Tenant Protection Guide required by the city — placing the owner in legal jeopardy.

Cities like San Diego and Chula Vista recently updated their Tenant Protection Ordinances to align with a new California State Law, Senate Bill 657.

This law, which took effect April 1, aims to eliminate supposed “loopholes” that previously allowed for tenant evictions for major renovations or for a family member to move into the property.

Landlords are now tasked with providing detailed notices that include specific information about the remodeling work, permits obtained, and the tenant’s right to reoccupy the unit. These changes demand a greater level of transparency and accountability from landlords — and a whole set of new forms and checklists.

Again, these rules apply to everyone, except for specific exceptions. If you’re renting out a home, they probably apply to you.

And that’s not all. More new rules are ahead.

forget that tenants have responsibilities, too. Tenants should familiarize themselves with their lease rules about smoking, pets, noise and other rules specific to the property. They have a responsibility to notify landlords of items needing repair and seek permission to make significant changes to the property.

Landlords, as integral members of the housing community, are engaging with these legislative changes constructively. They are committed to following the law and upholding the rights and wellbeing of their tenants.

As these laws and ordinances come into effect, landlords are focused on continuing to provide safe, affordable, and healthy housing options for the community.

The introduction of a California state law limiting security deposits to one month’s rent, effective July 1, is another change.

For everyone navigating the rental market, staying informed and prepared for these changes is not just beneficial — it’s crucial for building a thriving, supportive community.

Similarly, new legislation is being proposed that would force landlords to allow pets.

And that takes work.

With all these rules affecting landlords, it’s easy to

Alan Pentico, CAE, is the executive director of the Southern California Rental Housing Association.

certaroof SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

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hanks to everyone who participated the 2024 September 12, 2024 | 10:30 AM - in 6:00 PM Golf Classic on September 12Municipal at CoronadoGolf Municipal Golf Course.

Coronado Course

The SCRHA Golf Classic brings together rental housing professionals for a day of golf and prizes on a beautiful championship course. Register early for this popular event!

What to Expect

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Full Golf Tournament: Using the scramble format with Peoria scoring, the Golf Classic makes it easy for golfers of all abilities to enjoy a day on the links. Shotgun start at noon, Skill Contests: Show off your skills and win prizes for the longest drive, closest to the pin, and the putting contest.

Congratulations to the amazing winners of the 2024 Golf Classic!

Let’s give it up for these champions and their game.

Prize Giveaways: Attend and win! Sponsor giveaways and opportunity drawings throughout the day give you more opportunities to win!

#1 Low Gross: Kevin Fay, Jay Zunich, Greg Gorsuch, Brian Maguire #2 Low Net: Hanz Palacios , Chris Houle, Judge Ryan, Connor Quin #3 Highest Score: Maiah Shields, Ashley Ferguson, Denisha Moore, Devin Matthijssen Register A Foursome Closest to the Pin: Kalani Brinkoetter $1,150 Members | $1,585 Non-Members Thank You to Our Sponsors

Longest Drive: Hernandez Player ticket includesDaniel lunch voucher, sleeve of balls, free range balls, and opportunity drawing entries!

Rental clubs are offered subject to availability.

Call Us 858.278.8070

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OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

Register Online socalrha.org

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SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

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CALENDAR Register at socalrha.org Register for events and classes online at socalrha.org. Please note, that all in-person classes Questions? Contact us at events@socalrha.org or 858.278.8070

October 16

10:00A - 1:00P

Meeting of the Membership

Hilton Garden Inn Mission Valley

At the Meeting of the Membership, attendees will vote on the incoming 2025 Slate of Officers. The meeting is free to all SCRHA members, and there is one vote per company. Immediately following the meeting, SCRHA will host a lively discussion on the fight to defeat Proposition 33 and the state of property insurance in California. There is a fee for this portion of the event, which includes lunch.

ICON KEY

October 17

7:30A - 10:00A

Apartment Perspective: Finding Opportunity During a Market Correction Marriott Mission Valley

Is the current market correction in the real estate sector an obstacle—or could it be your next big opportunity? During the Apartment Perspective, our panel will explore how these market changes, coupled with evolving tenant laws and regulatory ICON KEY pressures, are reshaping the landscape.

October 22

2:30P - 3:30P

October 23

4:30P - 6:30P

Independent Rental Owner Council (IROC)

NextGen Bowling Tournament

Webinar

Tavern + Bowl East Village

Share your experience, knowledge, and best practices with colleagues in the rental housing industry. This session is free to all independent owner members and will focus on rental forms available in the SCRHA library of forms.

ICON KEY

Join the SCRHA NextGen Committee, for a night of friendly competition at our Bowling Tournament! Network with on-site colleagues and see if your team has what it takes to strike big. Register today, lanes will fill up quickly! ICON KEY

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OCTOBER JULY 2024 2024 - APARTMENT - APARTMENT MANAGEMENT MANAGEMENT MAGAZINE MAGAZINE AMM6 AMM6

November 1

5:30P - 9:30P

Mark of Excellence Awards Ceremony Sycuan Casino Resort Join us for a night of celebration and inspiration at the 30th Annual Mark of Excellence Awards Ceremony! Register early to secure your tickets at the best rate. You won’t want to miss your chance to be part of an unforgettable evening honoring outstanding achievements of the rental housing industry. Don’t miss out on the fun, and register early for the best rate!

ICON KEY

SPONSOR THE MARK OF EXCELLENCE AWA

UPCOMING EVENTS: NOVEMBER 1, 2024 5:30 PM - 9:30 PM

Diamond Sponsorship $8,500 SCRHA Members | $10,500 Non-Mem One Table of 10 Opportunity to Set Up “Nominee Merch G SYCUAN CASINO RESORT Two Sponsor Reps in the Awards Present Early Access to SCRHA Room Block Complimentary Group Photo Sponsoring Mark ofNovember Ruby Sponsorship 11/01: Mark of$6,500 Excellence Awards Excellence elevates your SCRHA Members | $7,500 Non-Mem Ceremony Six (6) Complimentary Tickets brand visibility in the rental Purchase 4 Additional Tickets to Rese housing community and 11/07: Fair Housing Part I Special Recognition at No-Host Bars provides unparalleled access Two Sponsor Reps in the Awards Present 11/14: Fair Housing Part II Sapphire Sponsorship to industry leaders and $5,500 SCRHA Members | $6,500 Non-Mem decisionmakers. 11/19: Rental Marketing Workshop: Four (4) Complimentary Tickets Creating a Listing That Works Purchase 6 Additional Tickets to Rese Two Sponsor Reps in the Awards Present Expected Attendance: ~600 Emerald Sponsorship Event Historically Sells Out $3,250 SCRHA Members | $4,000 SOUTHERN SOUTHERN CALIFORNIA CALIFORNIA RENTAL RENTAL HOUSING HOUSING ASSOCIATION ASSOCIATION - SCHRA.ORG - SCHRA.ORG 25 25 Non-Mem Three (3) Complimentary Tickets EVENT SPONSORS Purchase 7 Additional Tickets to Rese

RUBS CAN HELP YOU FIND SAVINGS... IN THE TRASH!

M

Contributed by the Livable Content Team

ost apartment communities aren’t seeing the potential savings right in their own backyard. One of the ways apartment housing providers choose to manage their utility costs is through a Ratio Utility Billing System (RUBS). RUBS is a system that allows housing providers to share costs with residents by allocating billing amounts based on unit occupancy, square footage, or a similar metric.

By dividing the cost between owner and residents, housing providers can increase their net operating income and encourage saving resources.

Many housing providers know that RUBS can be used with utilities such as water, sewage, electricity, gas and trash to recover costs and increase net operating income. It is commonly understood that trash utility costs include the trash hauler fees, often provided by the local municipality. But many professional property management teams are aware there is much more to managing trash than

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OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

simply hauling it away. Trash management includes the extras that keep your community looking (and smelling) its absolute best: •

Large item removals

•

Cleaning and tidying of trash and recycling areas

•

Doorstep valet pick-up

•

Pressure washing of trash and recycling areas

•

Odor and fly control

The little-known secret of RUBS savings is that these trash management services are also considered utilities and can therefore be shared with residents as utility costs. By incorporating other trash management costs, such as tidying, bulky item removal, valet pick-up, and more in RUBS, housing providers can minimize their utility costs as operating expenses for their multifamily properties even further.

In other words, there is money to be found in the trash.

forward-thinking.

Now, Services, Gen Z is Inc. GenisZajob seekers cite a company’s it’s a right fit, theThis offer Strategic Sanitation premium operating increasefeel of if $73,650 annually. analysis not as concerned withprovider recreation commitment to diversity as an should be made.

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What most management balance and is highlyinoptimistic be seen in initiatives like As an experiment the relationshiptobetween RUBS companies don’t know? These savings just might be and net operating savings, Strategic partnered with found in the trash.*Statistics pulled from Yello for the future, so these types asking one’s pronoun preference, Utility Service Providersadequate (MUMSPs) and ofMultifamily benefits will not only attract accommodations for What are you waiting for? Sign up with Livable today management companies to conduct an analysis of but also encourage them to stay those who are differently-abled, and start recovering rising utility costs including water, thetake annual Profit and Loss statements for atorandom and advantage of these policies ensure fair andand equal trash sewer. Generation Want to find out how Name Birthmuch Years you Southern California multifamily portfolio. opportunities. pay, etc. can save? Visit livable.com/apn to book a call with a The results revealed an average annual utility cost of

member of our team before signing up! 1946-1964 Baby Boomers

They Want See However, Diversity Strategic and They Want Offer, and They $1,054 pertounit. found thatan only Inclusion Want it NOW 44% of this cost was being recovered through RUBS. Gen X 1965-1980 This highly educated, highly Standard procedures make Livable estimates that most communities can HR recover 90% ofgeneration utility costs using RUBS. For this portfolio, a diverse is craving it difficult to establish a hiring Livable is dedicated Millennials to conserving water and other 1981-1996 90% recovery rate would mean recovering additional a passion and dedication to committee and follownatural the correct resources while helping independent rental $491 per using from a RUBS Combining owners more from their investments. To learn more diversity andunit inclusion theirstrategy. protocol when extending an get offer.

Gen Z 1997-2012 about Livable’s the per unit utility cost with a 90% recovery rate at employers. As a result, “86% of Gen Z wants no part of that. They innovative cost recovery solutions and a community of 150 units results in a potential net

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REGIONAL

LEGISLATIVEUPDATE

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Chula Vista Council Hears Report on TPO, Asks City Staff to Consult Industry on Hardships

O

n Tuesday, September 10, the Chula Vista City Council received a report on the Residential Tenant Protection Ordinance (TPO), originally approved in late 2022. The update from city staff provided the numbers of no-fault termination notices received by the city and shared that no fines have been issued to property owners to date. SCRHA was well-represented by Board member and Legislative Steering Committee Vice Chair Eric Sutton. Mr. Sutton stated that SCRHA stands ready to assist with any changes and/or improvements to the ordinance. He and other housing provider speakers expressed concern with the definition of substantial remodel which is more prohibitive than state law. Chula Vista requires that a unit must be vacant for at least 60 days and improvements must

cost at least $40/sq ft in order to meet the definition.

This formula limits the ability of housing providers to improve older housing stock. Mr. Sutton also pointed to the relocation requirement and the required use of the HUD Small Area Fair Market Rent when providing relocation payments versus contract rent. He provided councilmembers with a spreadsheet for an older 6-unit rental property in need of substantial remodel which highlighted the massive cost savings that could be accomplished with changes to the ordinance’s definition. Councilmembers Gonzalez and Preciado asked city staff to work with the industry over the next few months to see what impacts the ordinance is having on rental properties and to return in early 2025 with possible suggestions. SCRHA will continue to be a primary stakeholder and provide updates to members.

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29

MYTHS ABOUT EARTHQUAKES AND RETROFITS DISPELLED

I

by Ali Sahabi, Optimum Seismic

n 2019, California saw a dramatic rise in homelessness, with over 21,300 additional people living without shelter—a 16.4% increase, surpassing the combined total of all other states, according to the U.S. Department of Housing and Urban Development. By January 2020, this number had climbed another 7%, bringing the total homeless population to 161,000.

Think of how those numbers would grow if a major earthquake struck the area. Estimates are up to 36,000 households would be displaced. The impacts could be devastating, especially given many of our region’s most vulnerable structures are also home to our most at-risk populations.

Arizona in 2018 conducted a full-scale earthquake drill to deal with an anticipated influx of 400,000 Southern California evacuees going there to seek shelter following massive earthquake devastation.

The reason for this anticipated wave of nearly a half million refugees is simple. The majority of buildings identified as at risk of failure in an earthquake are older, more affordable apartments, as well as commercial buildings that house a wide variety of businesses providing jobs.

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OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

The loss of these structures would bring severe economic disruption with many thousands left without a roof over their heads or a job to provide for their families.

It’s a dire situation, particularly in more densely populated areas, the Association of Bay Area Governments determined.

If many of a region’s affordable housing units are lost in an earthquake, “a constrained market may drive up the cost of housing even further. Loss or damage of housing that results in increased costs… will likely increase the number of permanently displaced Bay Area residents.”

SOCIO-ECONOMIC IMBALANCE When it comes to earthquakes, older structures make up most of California’s dangerous building stock. Much of that building supply is used for housing and lowerwage commercial operations such as manufacturing, logistics and service-related industries.

These structures, because of their age, are more affordable to rent. But many apartment buildings constructed in the mid-1970s or earlier – are typically soft-story apartments built over open parking areas.

These buildings – constructed under outdated building

codes — frequently have structural deficiencies putting them at risk in a major earthquake.

That puts lower-income residents – seniors, working families and minorities — living in these structures at greater risk of death and injuries in a quake.

It also increases the risk of these vulnerable populations being left homeless in a disaster without the resources necessary to recover quickly from the loss of their homes.

Should a major earthquake strike again in the Long Beach area as it did in 1933 – and we all know that will happen someday – many of these structures could be lost or seriously damaged. If these buildings are left as they stand now without being seismically retrofitted to withstand earthquakes, we could see serious economic loss in the Long Beach area as potentially

thousands of people could be left without a roof over their heads or a job to provide for their families. Would they be forced to leave the area, to double-up with extended family or friends, live in transitional housing, or find a place somewhere on the streets? Time will tell.

Building safety benefits everyone and should not be limited to those who can most easily afford it. I encourage local leaders to seek out options to help owners make their buildings safer in order to protect apartments and local businesses before the next major earthquake strikes.

The Optimum Seismic team has the technical knowledge and professional experience necessary to do your balcony inspection or earthquake retrofit right.

Visit optimumseismic.com or call 833-978-7664 to arrange a complimentary assessment of your building.

The Optimum Seismic team has been making California cities safer since 1984 by providing full-service earthquake engineering, steel fabrication and construction services for multifamily residential, commercial and industrial buildings.

With more than 4,000 earthquake retrofit and renovation projects completed, Optimum Seismic’s work includes softstory multifamily apartments, tilt-up, non-ductile concrete, steel moment frame and unreinforced masonry (URM) buildings. To arrange a complimentary assessment of your building’s earthquake resilience, contact Optimum Seismic at (833) 978-7664 or visit optimumseismic.com.

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OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

Did you know that Proposition 33 eliminates vacancy decontrol?

Vacancy

DECONTROL vs. CONTROL San Diego County Vacancy decontrol allows property owners to bring rents to fair market rates when a tenant moves out.

A 2024 ballot initiative seeks to ban vacancy decontrol and instead allow local governments to limit the rent that property owners can set for move-ins (vacancy control). For those who have owned their properties for many years, rents are often 30% to 40% below market for long term renters. Under vacancy control, owners who are renting below market may never catch up, as shown in the example below.

Ex. A tenant first rents a 2-bedroom apartment in 2020 at $1,909 per month. Assuming a local rent cap of 3% per year, the rent is $2,086 in 2023 when the tenant vacates the unit.

What is the rent you can set upon vacancy and the financial impact of vacancy decontrol vs. control?

Over a five-year period, you could lose $27,297 for each 2-bedroom rental unit.

Decontrol

Control

Starting Rent

Owner is allowed to set monthly rent at current fair market value i of $2,502.

Difference

Year 1

$30,925

-$5,142

Year 2

$31,852

-$5,295

$26,557

Year 3

$32,808

-$5,455

$27,353

Year 4

$33,792

-$5,618

$28,174

Year 5

$34,806

-$5,787

$29,019

Total Loss over 5 years: -$27,297

Can you afford these losses? i 2020 and 2023 starting rental rates source: SCRHA Spring Vacancy And Rental Rate Survey

Owner is prohibited from raising rent to fair market and is restricted to $2,086. $25,783

Contribute to the SCRHA Issues PAC! ID #1468498 SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

33

Navigate Uncertainty: Economic Insights For Property Managers

I

by Max glassburg, Yardi breeze

n 2024, the economic landscape is as confusing as ever. Are we entering a period of stability and prosperity, or is this a peak before a crippling recession? Or maybe something in between that’s harder to define? We asked Jeff Adler, vice president of Yardi Matrix, who has made a distinguished career for himself spanning over three decades across various sectors of the real estate industry.

Jeff’s expertise is grounded in his leadership roles — from revitalizing operations at AIMCO to pioneering strategies in multifamily, commercial real estate, student housing and more. His academic prowess, marked by degrees from Yale and the Wharton School, complements his practical experience. All of us at Yardi Breeze, not to mention the property managers who utilize Yardi Matrix for its unparalleled market intelligence, rely on him for the latest market trends 34

OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

affecting real estate. As we delve into the complexities of economic cycles, let his perspective help you navigate economic uncertainty.

ONE OF THE CURIOUS THINGS ABOUT ECONOMIC OUTLOOKS IS THAT WE ALWAYS SEEM TO BE ON THE VERGE OF A RECESSION. WHAT’S GOING ON HERE? I’ll start by acknowledging that there’s a cyclical nature to economic activity. This understanding comes from reading a lot of history, which reveals the cycles of economic activity and financial cycles. These cycles are driven by the creation and destruction of credit.

Personally, I’ve experienced numerous cycles since 1973, spanning over 50 years. To truly grasp these economic cycles, one might need to look back 500 years, as the major cycles typically occur every 80 to 100 years. Currently, we’re still feeling the effects of the Great Financial Crisis of 2008-2009, an event the

likes of which hadn’t been seen since the 1929-1933 period. It’s important to recognize that the full impact of the 1929 crisis wasn’t resolved until 1945.

in rent and other areas, highlighting the ongoing challenges in managing the economy through these shocks.

Now, moving on to the post-Great Financial Crisis era, we observed a period of slow economic growth and low inflation, influenced by demographic changes, regulatory constraints and other factors.

In 2017, tax cuts led to an acceleration of economic growth. However, by 2019, we began to see signs of a potential economic slowdown, indicated by a yield curve inversion. These indicators, such as yield curve inversions and changes in the money supply, typically precede recessions or expansions by 12 to 18 months, as it takes time for their effects to permeate through the economy.

DID ANYONE PREDICT A MOVEMENT OF PEOPLE ON SUCH A SCALE?

For operators facing challenges, the emphasis is on finding cost-cutting measures and improving processes rather than succumbing to pessimism.

Automation and operational enhancements are ways to adapt and thrive.

The COVID-19 pandemic and its subsequent handling were unprecedented. For the first time in history, the global economy was voluntarily shut down, accompanied by a massive injection of liquidity to mitigate the economic fallout. This led to a shift in demand from services to goods, creating supply chain issues and a significant rebalancing of the economy. In 2020, there was a 40% surge in the money supply, the effects of which began to materialize with a lag.

By early 2021, it was evident that measures needed to be taken to address the economic impacts, including supply shocks and changes in consumer behavior due to lockdowns and remote work. Demographic shifts and a significant migration pattern emerged, with people moving to areas with a lower cost of living, thereby increasing demand and driving up rents by 20-30%, especially for new rentals due to a fixed supply of housing. This massive movement of people and influx of money supply led to notable inflation

Absolutely not. The size and manner of this movement were completely unprecedented, something we hadn’t seen before. In 2021, we saw housing costs increase.

However, those relocating didn’t mind the higher costs since they were moving from more expensive areas, and there was plenty of money in circulation.

It’s important to note that inflation doesn’t manifest immediately; it takes about a year to filter through the economy. By the latter half of 2021, inflation surged, prompting the Federal Reserve to start increasing interest rates in early 2022. This adjustment takes time to affect the economy, especially when rates were aggressively raised from 0% to 5.25%. The yield curve inversion in the fall of 2022 indicated a potential recession about a year and a half away.

The Federal Reserve’s actions, including raising interest rates and quantitative tightening, aimed to curb inflation and reduce excessive demand amidst a labor shortage. The labor market in 2021 was robust, marked by dislocations across industries and significant shifts as people sought better opportunities, leading to wage and rent increases. These dynamics are gradually resolving, but it’s a slow process.

As these adjustments take hold, inflation has peaked and is now decelerating, although it remains above the 2% target. Recent reports suggest it’s around 3.5%, but removing housing from this calculation, which is a lagging indicator due to the way housing costs are measured, shows a potential decrease. The surge in new supply in many markets is leading to declining rents for new leases, though renewal rates are still increasing but at a slower pace.

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Continued from page

35

The labor market is adjusting, with recent job growth concentrated in low-wage sectors such as hospitality and healthcare, while high-value sectors like tech and finance remain stagnant. Despite some job cuts and layoffs, especially in tech, unemployment claims remain low, though continuing claims suggest a longer duration for finding new employment, indicating a loosening job market. Wage growth expectations are adjusting, with potential normalization to levels consistent with a 2% to 3% inflation rate, reflecting broader economic shifts including the war in Ukraine and demographic changes affecting labor force participation rates.

The economy is experiencing a period of transition, influenced by monetary policy adjustments, labor market dynamics and changes in work flexibility.

These factors contribute to a complex and evolving economic landscape, where precise predictions are challenging but the general direction of slowing economic growth and adjustments in the job market and inflation rates can be predicted.

ARE WE RETURNING TO A NORMAL ECONOMIC CYCLE? It’s important to consider everything that’s happened

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OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

since 2020. Inflation has significantly impacted the economy, leading to periods where real wages decreased as prices increased before wages could catch up. However, wages did eventually adjust.

The current deceleration in wage growth is linked to the overall slowing of the economy and other prices decelerating, reducing market power and the urgency of shortages, thus diminishing the ability to enforce significant price increases.

We are indeed moving towards a period of normalcy as the economy rebalances. This doesn’t necessarily mean wages or prices will decrease unless there’s a significant reduction in the money supply and credit. The Federal Reserve’s goal, thus far achieved successfully, is to carefully deflate the economy’s inflationary pressures without causing a collapse, akin to avoiding the severe deflation experienced from 1930 to 1933 when the money supply contracted by 30%, leading to economic shrinkage and numerous problems.

The strategy aims to slow the rate of economic growth without inducing an absolute decline in price levels, which would introduce a new set of challenges.

Consequently, while wage growth is slowing, wages themselves are not decreasing, indicating a cautious approach to returning to economic normalcy without triggering adverse effects.

GIVEN OUR MEASURABLY STRONG ECONOMY, WHY ARE SO MANY PEOPLE PESSIMISTIC? Many people feel pessimistic due to specific challenges that disproportionately affect them. For individuals trying to buy a home without previously owning one, the high price levels of real estate combined with elevated interest rates can make this goal seem unattainable. This situation contrasts sharply with those who have refinanced their mortgages at low rates around 3%, bought cars before or during the early stages of COVID-19 when interest rates were low or have not seen a significant increase in their fixed costs. These individuals may have a considerable amount of disposable income due to rising wages without corresponding increases in most of their expenses, leading to a better financial situation.

However, the reluctance to openly discuss financial well-being can contribute to a skewed perception of the economy. For those attempting to enter the housing market, the situation is particularly tough. In booming regions of the Southeast, for instance, rents have surged has high as 9% since 2022 without a matching increase in wages. Many find themselves squeezed financially. Senior living got hit. Renters

have felt it. Anyone who had to buy a car knows what I’m talking about. Additionally, the cost of living has increased for many, with the price of transportation and vehicles rising due to shortages and interest rate hikes, further compounded by periods of high gas prices.

Inflation impacts people unevenly, hitting those at lower income levels hardest as a larger proportion of their income goes towards essentials like food, rent and transportation. Homeowners and those who are not faced with these rising costs may not feel the effects of inflation as acutely. Conversely, individuals in lower economic strata, especially those working in person-to-person industries, miss out on the benefits of remote work, such as reduced commuting costs and increased flexibility. They’re bearing the brunt of these economic shifts.

Here’s another thing to keep in mind. The overall statistics may not fully capture these disparities.

We l l - e d u c a t e d w o r k e r s w i t h stable costs for transportation and housing, who have benefited from the shift to remote work, represent a minority. Their increased flexibility and reduced need for travel and daily expenses have significantly improved their quality of life, unlike the majority who face heightened financial pressures. This divergence in experiences contributes to the pervasive sense of pessimism despite the strong economy, highlighting the need to consider individual circumstances and the unequal impacts of economic conditions.

IS THERE AN OPPORTUNITY COST TO OVERPREPARING FOR A RECESSION, SUCH AS LOST EXPANSION OR INVESTMENT OPPORTUNITIES? Our focus is to empower our clients by highlighting what they can do rather than what they can’t. Yardi Matrix in particular exists to help businesses effectively navigate cyclical economic challenges. I would argue that it’s crucial to provide an accurate assessment of Please turn to page

38

the current situation: explain what’s happening, why it’s happening and what’s likely to happen next, along with actionable advice for our clients. For instance, in the transaction market, buying assets as before might not be feasible due to unworkable deals. However, there are alternatives like exploring growing markets, considering assumable debt or looking for distressed situations to deploy capital.

For operators facing challenges, the emphasis is on finding cost-cutting measures and improving processes rather than succumbing to pessimism.

Automation and operational enhancements are ways to adapt and thrive. We consistently focus on

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Continued from page

37

actionable strategies in all our webinars, believing that it’s straightforward to list limitations but more valuable to identify opportunities.

Given the current economic climate, certain markets in the U.S. are experiencing a slowdown in rent increases due to an influx of supply. This situation is temporary, and over time, as these cities absorb the new supply, we anticipate a normalization of living costs and future rent growth. A potential issue arises from the current slowdown in project development due to increased costs and financing challenges, suggesting a shortage of supply in the future, say around 2025-2027, which could lead to rent increases once again.

Small businesses must continue to focus on delivering exceptional services despite these obstacles, preparing for increased costs in insurance, taxes and other operational expenses.

Real estate is inherently cyclical, involving cycles of economy, financing and development. Ignoring these cycles can lead to insufficient supply when demand spikes, often managed through regulatory means that can stifle supply or price adjustments. This has been evident in California, where housing restrictions have led to high rents and significant outmigration as people and companies seek more favorable environments.

Historically, economic growth has been concentrated in a few cities, leading to disparities. However, a shift occurred as people chose to relocate for better opportunities, demonstrating the impact of individual and collective decisions in response to economic pressures. COVID-19 accelerated this trend of outmigration from states like California, New York and Illinois. Though it has since returned to pre-pandemic levels, the movement continues but at a slower pace.

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ANY FINAL WORDS OF ECONOMIC WISDOM FOR SMALL BUSINESSES? For small businesses, it’s crucial to recognize the importance of the local economy and how it influences your operations. With varying economic conditions across the country, areas like the Midwest are experiencing stability and growth, showcasing that challenges are not uniform nationwide. It’s a reminder that while some regions thrive, others face difficulties, underscoring the need to adapt based on local market conditions.

Operating in the current environment presents its set of challenges, from rising expenses to the need for labor-saving technologies. The cost of funds is higher, and while some costs may not decrease significantly, finding ways to optimize operations remains essential.

This includes embracing technology to reduce labor dependence, as the labor market remains tight.

Small businesses must continue to focus on delivering exceptional services despite these obstacles, preparing for increased costs in insurance, taxes and other operational expenses. The real estate sector, often seen as a path to wealth accumulation, requires patience and adherence to fundamental practices of offering quality housing at reasonable prices. While quick riches are occasionally possible, the norm is gradual wealth-building through diligent management and long-term strategies.

We’re navigating a period marked by significant shifts.

These factors will continue to shape the economic landscape, requiring businesses to adjust and plan with these long-term trends in mind. Adaptation, resilience and a focus on core business principles are key to navigating the complexities of today’s economic environment.

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Questions &Answers Landlord Legal

by Kimball, Tirey & St. John LLP

Q

uestion: I have a unit that is subject to just cause. It is relatively new to me and I want to know if I can just non-renew my tenant since it is not working out.

A

nswer: Unfortunately, no you cannot nonrenew. When a unit is subject to any form of just cause, whether it be local or the Tenant Protection Act, you must have a legal reason to terminate the tenancy. The contract ending is not a valid reason. Generally speaking, you would have to offer them a new lease of similar terms and duration or allow them to roll month to month. You cannot however tell them to leave at the end of the contract.

Q

uestion: Can I accept rent after serving a notice for an issue other than payment? For example: after service of an unauthorized occupant notice.

A

nswer: You should always check with a knowledgeable attorney to determine whether you should accept rent or not if the notice served was for something other than payment.

Accepting rent after serving a notice may waive the notice.

Q

uestion: At what point does my property require an onsite resident manager?

A

nswer: If your property has 16 units or more, you are required to have an on-site “responsible person.”

Q

uestion: A resident at my property was taken to the hospital and passed away. Since the lease requires a 30-day notice, what is the law as far as reimbursement of the deposit?

A

nswer: When a tenant passes, a month-tomonth tenancy is terminated 30 days from the date of the decedent’s last rent payment.

Therefore, you have 21 days from the termination date to account for the security deposit (assuming that you have regained possession of the unit). If anyone else claims a right to possession, you may need to go through the eviction process. Consult with an attorney if the tenant is a term tenant.

Q

uestion: I served my resident a 30-Day Notice of Termination of Tenancy on the 15th of the month. My resident says I have to wait until the end of the month to serve the notice, is that correct?

Please turn to page

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SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

43

Continued from page

A

43

nswer: No. Under California law, either party can serve a Notice of Termination of Tenancy any day of the month. Make sure you do not accept rent beyond the expiration date of the Notice of Termination of Tenancy.

Q

uestion: I served a 60-day notice that expires on the 15th of the month. How much rent should I accept for the month in which the notice expires?

A

nswer: You can only accept 15 days of rent for that particular month.

Q

uestion:I recently purchased a triplex, and the escrow will be closing in a couple of days. The tenants are currently on a monthto-month rental agreement. Do I have to wait until the end of the month, or can I serve a notice of termination as soon as I take possession of the property?

A

nswer: You can serve a notice of termination of tenancy any day of the month; it is not required to expire at the end of the month. You are also entitled to rent until the notice expires.

Q

uestion: I have heard five different answers from five different people. Please, tell me what I can legally deduct from my tenant’s security deposit.

A

nswer: Rights and obligations regarding a residential tenants’ security deposit are governed by California Civil Code § 1950.5.

Allowable uses are cleaning, delinquent rent and damages above ordinary wear and tear. What is considered ordinary “wear and tear” is subject to a variety of opinions by judges. Move-in and move-out records of the condition of the apartment, pictures, receipts and opinions from those who did the work can establish damage beyond ordinary wear and tear.

Q

uestion: Our tenant gave us a thirty (30)-day written notice to terminate her tenancy. She moved out 10 days after serving the notice and claims she only owes rent up to the day she moved out.

A

nswer: She is liable up the date the thirty (30)day notice expires, minus amounts that you can collect by making reasonable efforts to rent the unit to a replacement tenant. However, note that a person terminating a tenancy based upon domestic violence is only liable for 14 days of rent.

Q

uestion: I recently received an application from a young married couple. He is twenty but she is only seventeen. I told her she was too young to sign the rental agreement and he had to qualify on his own even thought she was working.

She said because she was married, she was qualified to sign. I never heard of this law. Is she right?

A

nswer: California recognizes an individual’s right to enter into binding contracts if they are eighteen years of age or older, in active duty in the military, married, or are emancipated by order of the court. You therefore should treat her the same way as you would any other adult applicant.

Q

uestion: A couple recently applied for one of our vacant units. They have jobs but do not quite qualify for the unit (they need to make three times the amount of the rent). They said that his father would be willing to co-sign as a guarantor in order to qualify. How should I work this arrangement on the lease?

A

nswer: Use a separate, well drafted guaranty form.

Q

uestion: One of my two tenants on the lease moved out due to a job transfer. The remaining tenant would like to stay and pay the entire amount. Do I need to write up a new lease or simply prepare an addendum stating the remaining tenant is solely responsible?

A

nswer: You can amend the lease to remove the vacating tenant or keep the current lease in place without amendment (in which case the vacating resident may remain rent responsible) or terminate the existing lease and enter into a new lease with the remaining resident.

Kimball, Tirey & St. John LLP is a full service real estate law firm representing residential and commercial property owners and managers.

This article is for general information purposes only. While KTS provides clients with information on legislative changes, our courtesy notifications are not meant to be exhaustive and do not take the place of legislative services or membership in trade associations. Our legal alerts are provided on selected topics and should not be relied upon as a complete report of all new changes of local, state, and federal laws affecting property owners and managers. Laws may have changed since this article was published. Before acting, be sure to receive legal advice from our office. For contact information, please visit our website: www.kts-law.com. For past Legal Alerts, Questions & Answers and Legal Articles, please consult the resource section of our website. © 2024 Kimball, Tirey and St. John LLP

44

OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

Since 1967

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DIRECT DISTRIBUTOR TO THE MULTIFAMILY OWNER, INVESTOR, MANAGER, BUILDER, CONTRACTOR, & DESIGNER

NH: 818-769-8000 | www.ApartmentSupply.com | VN: 310-450-8585

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SINCE 2013: 14117 Vanowen Street Van Nuys: 310-450-8585

APARTMENT REPLACEMENT | CONTRACT SALES | NEW CONSTRUCTION | SINGLE-FAMILY

SA ME-DA Y O R NEXT -DAY D EL IVER Y AND INST ALLATION AVAIL ABL E! CALL US FOR MORE INFO R MATIO N PRICES, SI ZES, AVAILABI LITY & MODELS ARE SUBJ ECT TO CHANGE ANYTIME WI THOUT NOTICE

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

45

© Adeliepenguin | Dreamstime.com

REGIONAL

© Hhunlimitedmedia - Dreamstime.com

LEGISLATIVEUPDATE

© Sumikophoto | Dreamstime.com

Prop. 33 would repeal Costa-Hawkins and expand rent control. What it means for you.

T

hank you to everyone who attended the Rent Control Town Hall on Friday, Sept. 13 to discuss Proposition 33 on the November ballot. The event, our third town hall this election cycle, was graciously hosted by the Pacific Southwest Association of REALTORS® at their office in Chula Vista.

As a reminder, Prop. 33 would repeal Costa-Hawkins and expand rent control.

What it means for you: • Local jurisdictions will have free rein to impose and expand rent control.

• Will prohibit rent increases upon vacancy (also known as vacancy de-control) by eliminating the owner’s ability to charge the market rate when a tenant vacates the unit.

• Imposes rent control on all properties including single-family homes and condominiums by eliminating AB 1482 protections. It would also allow rent control on newly constructed housing.

Here’s a recap of the key points discussed by our speakers: Jordan Marks, San Diego County Assessor-RecorderClerk, emphasized the massive threat to property values and public services if Costa-Hawkins is repealed. With over 770,000 single-family homes and condos in San Diego County, and 40% not owneroccupied, Marks explained that removing CostaHawkins could jeopardize a third of the county’s property tax base, leading to significant cuts in essential services like police and fire departments.

Marks also noted that rental rates have increased by 4% across the county, partially due to uncertainty

46

OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

surrounding the measure. Some housing providers are even choosing to keep units vacant, waiting for market conditions to stabilize.

Rich D’Ascoli, CEO of the Pacific Southwest Association of Realtors®, discussed how rent control and vacancy decontrol would negatively impact property owners. He noted that as one example, many Navy personnel rent out their home while they are deployed, while fully intending to return to San Diego.

With Prop. 33 allowing jurisdictions to impose rent control and restrict evictions on single family homes, this measure threatens a military servicemember’s ability to return and live in the house that they own, he said.

D’Ascoli warned that as demonstrated in markets like New York, rent control leads to tenants staying in homes for decades – preventing those in need from accessing affordable housing.

He also noted that the campaign to defeat a proposed rent control measure in National City was expensive – an estimated $50 per voter – and despite that, it was still a close vote. If Prop. 33 passes, we could see measures like this pop up in local cities – requiring more expensive fights, he said.

Lori Holt Pfeiler, CEO of the Building Industry Association of San Diego, stressed that a healthy housing market is crucial for healthy communities, and rent control only disrupts this balance. With capital already difficult to secure in the region, rent control would further discourage new construction. This would ultimately reduce the availability of affordable housing, including naturally occurring affordable housing, she said.

The BIA PAC has voted to oppose Prop. 33, she said.

Christine La Marca, CalRHA and SCRHA Past Please turn to page

48

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47

Continued from page

46

President, highlighted the significant financial risks to owners if Costa-Hawkins is repealed. She pointed out that cities would be likely to consider local rent control measures – echoing D’Ascoli’s comments that such measures would be costly to fight if they were expanded to the properties currently exempt under Costa-Hawkins.

La Marca explained how repealing Costa-Hawkins would restrict property owners’ rights to reset rents or evict tenants, making it harder to maintain and renovate rental units. Some investment dollars are already shifting to other markets, even as far as Canada, due to California’s increasingly restrictive housing policies, she said.

La Marca also introduced a special calculator on the CALRHA website that helps property owners learn how much they would lose if vacancy decontrol is eliminated. She warned that the longer units remain occupied at lower rents, the harder it becomes to raise rents to market levels when tenants eventually move out.

Molly Kirkland, SCRHA Director of Public Affairs, moderated the event. She discussed the costly nature

of these rent control battles and the importance of raising funds to fight back. Kirkland emphasized the need for ongoing financial support to continue the campaign to defeat Prop. 33.

In closing, we urge you to contribute to the SCRHA Issues PAC*. Your financial support is critical in helping us protect property rights and fight against the dangerous rent control measure, Prop. 33. You can mail a check to our office payable to the SCRHA Issues PAC or click here to donate.

Thank you for your continued support and engagement in this critical issue.

NO ON PROP 33 YARD SIGNS ARE NOW AVAILABLE! Signs may be picked up Monday through Friday between 9:00 AM and 4:00 PM at 8480 La Mesa Boulevard, La Mesa, CA 91942. Signs are limited to one per property (including your personal residence).

Yard signs will be available for pick in other parts of the region (South Bay, Central SD, North County) in the coming weeks. SCRHA will communicate other pick-up locations in future emails.

livable

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OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

49

Response

griswold

50Southern OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE 6| California Rental Housing Association RentalAMM6 Advisor July 2021 18 | Southern California Rental Housing Association Rental Advisor April 2022

Five Peaks Property Management . . . . . 619.814.7505 Flats LLC . . . . . . . . . . . . . . . . . . . . . . . . . . .248.860.8845 Foothills at Old Town | Sentinel Corp G

951.676.7545

Gables Oak Creek . . . . . . . . . . . . . . . . . . . 951.600.9696 Gables Point Loma . . . . . . . . . . . . . . . . . . 619.223.6577 Gables at Alta Murrieta . . . . . . . . . . . . . . . 951.698.0628 Griffis Mission Valley . . . . . . . . . . . . . . . . . 619.220.0530 Griswold Real Estate Mgmt., Inc. . . . . . . 858.597.6100 H

H.G. Fenton Company . . . . . . . . . . . . . . . 619.400.0120 Hanken, Cono, Assad & Co. . . . . . . . . . . 619.698.4770 Heartland Associates Inc. . . . . . . . . . . . . .619.462.2082

A All Points Real Estate . . . . . . . . . . . . . . . . .619.298.7724 Alliance Investment Corp. . . . . . . . . . . . . .858.597.4900 AltaCima Apartment Homes . . . . . . . . . . 858.565.8333 Antelope Ridge (Sentinel Real Estate)

951.672.8181

Arbor Terrace | Westlake Housing . . . . . . 619.293.3612 Arbors at California Oaks Apartment Homes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 951.461.3264 Asset Property Management . . . . . . . . . .858.560.9363

HeetWave Properties . . . . . . . . . . . . . . . . .888.557.4338 Holland Partner Group . . . . . . . . . . . . . . . 360.694.7888 Humphreys Residential . . . . . . . . . . . . . . .619.865.0389 I

IPI Property Management . . . . . . . . . . . . .858.277.2700 Iconic on Alvarado | BH Management Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619.286.3990 Income Property Advisors Inc. . . . . . . . . .858.279.1500

Beard Property Management . . . . . . . . . .619.892.8722

Investment Safe . . . . . . . . . . . . . . . . . . . . . 619.884.0906

Bob Cota Realty . . . . . . . . . . . . . . . . . . . . .619.465.9934

Johnston Property Management, Inc.

B

Brennan And Associates Inc. . . . . . . . . . .619.475.2470 Brentwood Management Co. . . . . . . . . . .619.220.8595 Bridge Property Management . . . . . . . . . 801.716.5795 Brycorp, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 619.920.7174

J

L

LSD Enterprises DBA SD Real Estate

760.944.0703 858.717.3353

Leonero Properties . . . . . . . . . . . . . . . . . . .619.280.8678 Liberty Military Housing . . . . . . . . . . . . . . .858.874.8100

Buchanan Property Management Corp. 619.269.0276

Logan Property Management . . . . . . . . . 619.260.5562

CFI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 858.200.4260

M

C

Cambridge Management Group, AMO 619.497.0771 Campus Village 1, 2 & 3 | 6 Star Properties619.583.3339 Cardinal Group Management . . . . . . . . . . . . . . . . . . . . . .

Chase Pacific Property Management and Real Estate Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . 858.271.8841 Cirrus Asset Management, Inc. . . . . . . . . 818.222.4840 City View Apartments|Greystar . . . . . . . . 619.234.0134 Community Research Foundation, Inc. 619.275.0822 Core Property Group . . . . . . . . . . . . . . . . .619.399.7279

Lyon Living . . . . . . . . . . . . . . . . . . . . . . . . . 949.838.1274 MG Properties . . . . . . . . . . . . . . . . . . . . . . 858.658.0500 Mira Bella Apartments | Simpson Property Group . . . .

858.560.5720 Modera San Diego | Mill Creek Residential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619.500.8509

N

NAI San Diego Property Management 619.497.2255 Noah Realty . . . . . . . . . . . . . . . . . . . . . . . . 858.504.0416 O

Cushman & Wakefield . . . . . . . . . . . . . . . . 949.224.2929

Oakleaf Apartments | Management Works760.433.9510

Delta Property Management . . . . . . . . . . 619.465.5851

P

D

Douglas Allred Company . . . . . . . . . . . . . 858.793.0202

Ocean Breeze Apartments|Greystar . . . . 619.428.3369 Pacific Commercial Management, Inc

858.450.6886

Dwell Management Co. . . . . . . . . . . . . . . 619.469.3000

Parkdale Apartments | Norco Mgmt. Corp.760.737.9017

Eagle Glen Apartments | Greystar . . . . . .951.461.4565

Paul Langley Company . . . . . . . . . . . . . . .415.431.9104

E

Elite Property Management . . . . . . . . . . . 619.823.3712

Pasas Properties, Inc. . . . . . . . . . . . . . . . . 619.607.7560 People Helping Others Prop. Mgmt. . . . . 619.282.5400

Euston Management . . . . . . . . . . . . . . . . .858.793.8899

Pierside North | Greystar . . . . . . . . . . . . . .949.202.3991

Fairgrove Property Management . . . . . . .714.541.0288

Professional Real Estate Management 619.297.7736

F

Providence Real Estate Management Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 760.525.8705

R

R. A. Snyder Properties, Inc. . . . . . . . . . . .619.297.0274 REC Properties| Penasquitos Point Apts. 858.484.5047 RG Investment Real Estate Services Inc. 858.268.5004 Red Tail Residential . . . . . . . . . . . . . . . . . . 951.234.5204 Rehmann Realty Group . . . . . . . . . . . . . . .619.440.5669 Richman Property Services . . . . . . . . . . . 813.262.0401 Riveroaks |Waterton Residential . . . . . . . . 760.721.8585 Rohn Properties Management . . . . . . . . .619.990.7433 Rolling Hills Gardens | Greystar . . . . . . . . 619.482.7583 S

SBCS, Corporation . . . . . . . . . . . . . . . . . . 619.420.3620 San Diego Housing Commission . . . . . . 619.578.7531 San Diego Realty Services . . . . . . . . . . . . 619.713.1044 Sardo Properties . . . . . . . . . . . . . . . . . . . . .619.405.9418 ScottWay Capital . . . . . . . . . . . . . . . . . . . . 619.209.3544 Sea West Property Management . . . . . . 760.787.6035 Southwest Equity Partners . . . . . . . . . . . . 760.642.0400 Stanza Little Italy | Greystar . . . . . . . . . . . . 619.677.1799 Sudberry Properties, Inc. . . . . . . . . . . . . . .858.546.3000 Summit Realty and Management . . . . . . 619.423.3023 Sun An Sea Property Mgmt. . . . . . . . . . . 619.298.4160 SunRidge Properties, Inc. . . . . . . . . . . . . .858.578.3600 Sunrise Management Company AMO 858.751.1768 T

Team Bourda Incorporated . . . . . . . . . . . . 619.851.3784 The Dylan | Afton Properties . . . . . . . . . . .760.439.2752 The Helm Management . . . . . . . . . . . . . . 619.589.6222 The Rey Apartments | Berkshire Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408.614.5587 Torrey Pines Property Management . . . . 858.454.4200 Toscana at Rancho del Rey Homes| ConAm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619.421.9300

U

UDR, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . .720.283.6120 Urban Coast Properties, Inc. . . . . . . . . . . 619.797.6733 V

Valentina by Alta | Greystar . . . . . . . . . . . . 619.391.2700 VandenBerghe Properties . . . . . . . . . . . . .925.819.1009 W

Waypoint Property Management Services619.471.1755 Whispering Oaks Apartments | Greystar 760.471.1262 Whittington Property Management Inc. 619.667.3050 Willin Properties . . . . . . . . . . . . . . . . . . . . . 619.298.0500 Z

Zimmerman Property Management . . . . 619.546.5361

Pierside South | Greystar . . . . . . . . . . . . . .760.433.3500 SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

51

I

NAVIGATING APARTMENT INSURANCE NON-RENEWALS

by Cameron Stewart, Crest Insurance

f you are an owner of an apartment property that has been non-renewed by an insurance carrier for any reason, you’re likely being faced with an increase in insurance costs you would not know to prepare for without the guidance of an independent insurance broker. You may also be faced with an inability to maintain the insurance protection you would desire. We are providing this article to help you navigate this process to the best of your ability by answering the following common questions being asked of us.

HOW DID WE GET HERE?

Without dwelling too long on why the insurance market is changing so drastically, we will share it is largely attributable to the impact on the insurance industry of “social inflation” as well as inflation of the true cost to rebuild commercial properties, which has driven up claims costs and is what insurance is actually rated by.

HOW DO I GO ABOUT FINDING A NEW CARRIER? We recommend selecting only (1) independent insurance broker to represent you in the insurance marketplace. Insurance companies only allow (1) insurance broker to represent a client. Having multiple brokers representing you reflects negatively on you and indicates to insurers you may not be familiar with how to manage insurance for your properties. If you can compare this process of buying a new insurance policy to buying a new property, it would not make sense to submit an offer for a property from two different real estate brokers. Pretend in this case an insurance carrier is a potential new property you are searching for and rely on a broker you trust to submit your risk profile to the insurance carrier.

HOW DO I KNOW A BROKER IS GOING TO COME THROUGH FOR US AND FIND US REPLACEMENT INSURANCE? Our suggestion is to ask the broker going to the market for you for a full list of insurance companies they are going to approach on your behalf. You can then share that list with a secondary insurance broker and ask if the first broker missed any potential insurance sources you should be considering. We provide this list with consistent updates to all our clients.

WHAT INFORMATION IS NEEDED TO GET QUOTES? Other than very basic information about the property such as square footage, number of units, rental income, below is what is most crucial to always keep on file to maintain the best insurance options, moving forward.

1. (If Year Built Prior to 1980) Confirmation of the brand of the current electrical panels main and sub panels.

We recommend taking a picture up close of the label of the electrical panel which should display the brand.

2. (If Year Built Prior to 2000) Descriptions and receipts for all updates made to Roofing, Electrical, Plumbing, and HVAC. 3. Hard Copy Currently Valued Loss Runs from the current insurer, regardless of whether you have had any claims.

If you find yourself in this situation, it’s important to find honest feedback and expectations from an insurance professional.

Cameron Stewart is the Vice President Risk Management & Insurance Consultant for Crest Insurance. Please be on the lookout for additional articles regarding risk management and insurance strategies for apartment owners from Crest Insurance. Contact Cameron Stewart any time at (858) 547-1128 or cstewart@crestins.com.

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OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

Sid’s Carpet Barn, Inc. . . . . . . . . . . . . . . . . 619.477.7000

EXTERMINATORS;PEST CONTROL

Atlas Property Service . . . . . . . . . . . . . . . . 858.386.4578

FINANCIAL SERVICES

CLEANING & JANITORIAL SERVICES

Bar-B-Clean San Diego South . . . . . . . . .858.988.7966 Cleanology Housekeeping Personnel Service . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .619.281.2532

DAPA Services Inc. . . . . . . . . . . . . . . . . . . 619.221.9292 Pacific Coast Cleaning, Inc. . . . . . . . . . . . 858.565.1603 TWS Facility Services . . . . . . . . . . . . . . . . 888.883.1915 COIN-OPERATED LAUNDRY EQUIPMENT

All Valley Washer Service . . . . . . . . . . . . . 800.247.1100 1031 EXCHANGE SERVICES, & TRUST SERVICES

WASH Multifamily Laundry Systems

ADVERTISING & MARKETING

Kimball, Tirey & St. John LLP . . . . . . . . . .619.234.1690

Exeter 1031 Exchange Services, LLC

619.239.3091

COLLECTIONS

858.279.1234

Payne Pest Management . . . . . . . . . . . . .877.277.3970 Zego . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .858.602.2780 FITNESS EQUIPMENT & SALES

Advanced Exercise . . . . . . . . . . . . . . . . . . 303.996.0048 Opti-Fit . . . . . . . . . . . . . . . . . . . . . . . . . . . . .888.601.4350 FLOOR COVERINGS

Real Floors . . . . . . . . . . . . . . . . . . . . . . . . . 951.317.2231 Redi Carpet Sales of California , LLC FURNITURE RENTALS

760.759.0792

Cort Furniture Rental . . . . . . . . . . . . . . . . . 858.549.0800 GENERAL CONTRACTORS

Apex Contracting & Restoration, Inc.

858.987.1800

Apartment News Publications . . . . . . . . . 714.893.3971

BuzzCRS, Inc . . . . . . . . . . . . . . . . . . . . . . . 816.341.8887

Rent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .858.220.8521

Cambridge Maintenance and Property Services, Inc.

Dnuevo Design, Inc. . . . . . . . . . . . . . . . . . .888.383.5134

AIR CONDITIONING

CHC Construction . . . . . . . . . . . . . . . . . . . 858.228.7036

McMillin Contracting Services . . . . . . . . . 619.401.7000

APARTMENT BROKERAGE/SALES

McMillin Contracting Services . . . . . . . . . 619.401.7000

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619.483.1031

CONSTRUCTION MANAGEMENT

Mr. Appliance of Ramona . . . . . . . . . . . . .760.896.4994

DECK COATING

Andrew Griffin . . . . . . . . . . . . . . . . . . . . . . .619.440.5000

Life Deck Coating Installations . . . . . . . . .619.262.8600

Kimball, Tirey & St. John LLP . . . . . . . . . .619.234.1690

Kennedy Electric . . . . . . . . . . . . . . . . . . . . 619.582.6568

BACKFLOW TESTING

Allegion . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619.486.4437

San Diego Backflow Testing, Inc. . . . . . . 877.363.8378

ATI Restoration, LLC . . . . . . . . . . . . . . . . . 619.318.2807

McMillin Contracting Services . . . . . . . . . 619.401.7000

Knight Commercial . . . . . . . . . . . . . . . . . . 877.965.8200

Financial Designs, Ltd. . . . . . . . . . . . . . . . .858.597.1980 Zillow Rentals . . . . . . . . . . . . . . . . . . . . . . . 206.516.2263

CONSTRUCTION AND REMODELING

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .619.320.8334

Aquinas HVAC . . . . . . . . . . . . . . . . . . . . . . 619.410.3154

Dexcore Restoration . . . . . . . . . . . . . . . . . 619.993.3417

Doug Taber CCIM - Rental Property Broker

TRUBuild Solutions . . . . . . . . . . . . . . . . . . 619.292.8653

APPLIANCE MAINTENANCE & REPAIR

Southern Cross Property Consultants

ATTORNEYS-AT-LAW

General Coatings Corporation . . . . . . . . .619.707.2639

Heinz & Feinberg . . . . . . . . . . . . . . . . . . . . 619.238.5454

Electrical Contractors

Todd A. Brisco & Associates, APC . . . . . 714.634.2814

ELECTRONIC KEY ACCESS

Pacific Backflow Company, Inc. . . . . . . . 760.639.4000

Emergency Service Flood/ Fire

BALCONY & DECK REPAIRS

BELFOR Property Restoration . . . . . . . . .858.847.9886

BALCONY INSPECTIONS

Generation Contracting & Emergency Services, Inc.

BANKS

EMPLOYMENT AGENCY

Bathroom Remodeling & Refinishing

InterSolutions . . . . . . . . . . . . . . . . . . . . . . . 619.804.2554

CABINET AND COUNTERTOPS

The Liberty Group . . . . . . . . . . . . . . . . . . . 951.744.0057

Qwikkit . . . . . . . . . . . . . . . . . . . . . . . . . . . . .844.484.3548

ESA Multifamily Energy Savings Program310.899.5382

CARPET CLEANING

ENVIRONMENTAL: ASBESTOS/ LEAD/ MOLD

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .619.281.2532

Rarefied Air Enviornmental Inc . . . . . . . . .619.888.4840

C R FLOORING COMPANY . . . . . . . . . . 619.748.0015

EVICTIONS

PropertyInspections@USA.com . . . . . . . .858.367.9088

858.945.2629

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .858.679.9928

Chase Commercial Term Lending . . . . . .619.464.0573

Go-Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . 858.518.0326

American Bathtub Refinishers . . . . . . . . . 619.265.9200

Legacy Apartment Staffing . . . . . . . . . . . . 619.387.5530

Grand Design Kitchens . . . . . . . . . . . . . . .760.789.0992

ENERGY EFFICIENCY CONSULTING

Surface Experts Central San Diego . . . . .858.926.4041

Statewide Reach Codes Program . . . . . .619.987.7035

Cleanology Housekeeping Personnel Service . . . . . . . .

Caliber Restorations Inc . . . . . . . . . . . . . . 858.748.7152

CARPET SALES & FLOORING

Vert Environmental . . . . . . . . . . . . . . . . . . .858.433.3290

J & C Carpet Company . . . . . . . . . . . . . . .619.498.1424

Kimball, Tirey & St. John LLP . . . . . . . . . .619.234.1690

BluSky Restoration Contractors, LLC

619.398.0200

Camp Construction Services . . . . . . . . . .713.413.2267

M. C. Contracting Service . . . . . . . . . . . . .619.282.3083 Modular Building specialist corp . . . . . . . 619.980.7481 GOLF CART SALES & SERVICE

CartMart Inc. . . . . . . . . . . . . . . . . . . . . . . . . 760.744.4420 HEATING & AIR CONDITIONING

H2O Heating Pros, Inc. . . . . . . . . . . . . . . . 951.796.0168 Sam’s Heating and Air Conditioning, Inc. 619.697.9824 INSURANCE

Crest Insurance Group . . . . . . . . . . . . . . . 858.547.1128 Farmers Insurance McWhirter Agency 619.463.7320 INTERNET SERVICE PROVIDER

Cox . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 858.836.7582 Google Fiber . . . . . . . . . . . . . . . . . . . . . . . . 206.531.1250 Quantum Fiber . . . . . . . . . . . . . . . . . . . . . . 360.931.9864 KITCHEN REMODELING

McMillin Contracting Services . . . . . . . . . 619.401.7000 LANDSCAPE MAINTENANCE & SERVICE

Landcare Logic . . . . . . . . . . . . . . . . . . . . . .951.316.8002 MSE Landscape Professionals, Inc. . . . . 442.257.4229 Pacific Green Landscape, Inc. . . . . . . . . .619.820.6614 LEAK DETECTION

Cable, Pipe & Leak Detection, Inc. . . . . . 619.873.1530 MAILBOX INSTALLATION & REPAIRS

Sprint Postal Products . . . . . . . . . . . . . . . . 619.660.1956 MAINTENANCE & REPAIR

Schindler Elevator Corporation . . . . . . . . 949.781.6056 MAINTENANCE SUPPLY

HD Supply . . . . . . . . . . . . . . . . . . . . . . . . . .858.226.9671 Lowes Pro Supply . . . . . . . . . . . . . . . . . . . 661.219.5611 MARKET RESEARCH

ALN Apartment Data . . . . . . . . . . . . . . . . .800.643.6416 MOVING & STORAGE

McCarthy Transfer & Storage . . . . . . . . . .619.596.2594

KJ Carpet Wholesale . . . . . . . . . . . . . . . . .909.455.0180 SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

53

PACKAGE/PARCEL MANAGEMENT SERVICES

Voit Real Estate Services . . . . . . . . . . . . . .858.453.0505

SMART TECHNOLOGY

McMillin Contracting Services . . . . . . . . . 619.401.7000

SUBMETERING / BILLING SERVICES

Parcel Pending . . . . . . . . . . . . . . . . . . . . . .949.490.6987

RENOVATIONS & REMODELING

Dunn-Edwards Corporation . . . . . . . . . . .619.884.3866

RENT GUARANTOR

PAINTING

REPIPING

PAINT MANUFACTURERS & SUPPLIES

Sherwin-Williams Co. . . . . . . . . . . . . . . . . 619.221.3866

TheGuarantors . . . . . . . . . . . . . . . . . . . . . . 212.266.0020

Dnuevo Design, Inc. . . . . . . . . . . . . . . . . . .888.383.5134

National Renovations, LLC - DBA Repipe

Primus Paint Worx, Inc. . . . . . . . . . . . . . . .619.738.8022

RESIDENT RETENTION

Reliant Parking Solutions . . . . . . . . . . . . . 888.977.6848

RESIDENT SURVEYS

Eagle Paving . . . . . . . . . . . . . . . . . . . . . . . . 858.486.6400

ROOFING

Accurate Termite and Pest control . . . . . 949.994.0758

Commercial & Industrial Roofing . . . . . . .619.465.3737

Kilter Termite and Pest Control . . . . . . . . .714.348.0488

Sully-Jones Roofing . . . . . . . . . . . . . . . . . .800.611.3110

PLUMBING

Security First . . . . . . . . . . . . . . . . . . . . . . . . 619.243.3992

Executive Coatings & Contracting . . . . . .888.300.6786

Specialists, Inc . . . . . . . . . . . . . . . . . . . . . . 703.801.8269

PARKING MANAGEMENT SOFTWARE

WithMe . . . . . . . . . . . . . . . . . . . . . . . . . . . . 714.476.6059

PAVING MAINTENANCE PEST CONTROL

SatisFacts Research . . . . . . . . . . . . . . . . . 866.655.1490 A-1 All American Roofing Company . . . . 858.537.5177

Ivy Energy . . . . . . . . . . . . . . . . . . . . . . . . . . 801.318.7803 QMC Metering Solutions . . . . . . . . . . . . . 778.809.0052 VITALITY IO, Inc. . . . . . . . . . . . . . . . . . . . . .801.341.1844 TENANT SCREENING

Intellirent . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415.849.4400 TOWING SERVICES

Western Towing . . . . . . . . . . . . . . . . . . . . . 619.297.8697 TREE SERVICES

Four Seasons Tree Care . . . . . . . . . . . . . . 760.705.7751 Rancho Coastal Tree . . . . . . . . . . . . . . . . .619.847.4225 WASTE MANAGEMENT

Strategic Sanitation Services . . . . . . . . . . 877.271.7909 Valet Living . . . . . . . . . . . . . . . . . . . . . . . . . 813.248.1327

BugMizer Termite and Pest Inc . . . . . . . . 760.855.2847

Gorman Roofing Services . . . . . . . . . . . . .602.262.2423

Lloyd Pest Control . . . . . . . . . . . . . . . . . . . 800.570.2847

SECURITY GUARD PATROL

BioAir Mechanical & Plumbing . . . . . . . . .858.348.9248

SECURITY SERVICES

Restoration Management Company . . . . 858.933.1871

PROPERTY MANAGEMENT SOFTWARE

Brothers in Arms Security . . . . . . . . . . . . .844.458.1021

SERVPRO of Sorrento Valley . . . . . . . . . . 619.677.7637

Pfister . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .720.660.2883

Bald Eagle Security Services, Inc. . . . . . .619.230.0022

Domuso . . . . . . . . . . . . . . . . . . . . . . . . . . . . 985.210.3473

HandyTrac Systems . . . . . . . . . . . . . . . . . .800.665.9994

Doug Taber CCIM - Rental Property Broker . . . . . . . . .

SEISMIC RETROFIT

REAL ESTATE

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .619.483.1031

JDS Security . . . . . . . . . . . . . . . . . . . . . . . . 619.781.8694 Optimum Seismic . . . . . . . . . . . . . . . . . . . 562.298.6395

WasteXperts, Inc . . . . . . . . . . . . . . . . . . . . 206.496.9289 WATER DAMAGE RESTORATION

Generation Contracting & Emergency Services, Inc.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .858.679.9928

Service Solutions Restoration . . . . . . . . . 760.290.3017 WINDOWS

Newman Windows and Doors . . . . . . . . .760.809.8113 South Coast Windows & Doors . . . . . . . . 858.228.7036

The SCRHA Business Directory of Suppliers is where you'll find the products and services you need to run a successful rental business.

Use an SCRHA member first to invest in businesses that support a thriving rental housing community!

Scan the code to connect with SCRHA Supplier Members!

www.SoCalRHA.org

54

OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

applyconnect

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

55

Proposition 33 Repeals the Costa-Hawkins Rental Housing Act and Expands Rent Control

HELP STOP RENT CONTROL INITIATIVE

FACTSHEET

2024 BALLOT INITIATIVE

PROPERTY OWNERS

Local jurisdictions will have free rein to impose and expand rent control.

Your rental income and property value will decline.

Will prohibit rent increases upon vacancy (also known as vacancy de-control) by eliminating the owner's ability to charge the market rate when a tenant vacates the unit.

If you are renting your units below market, you may never catch up because the initiative allows local jurisdictions to cap how much you may increase rent following a vacancy.

WHAT IT DOES

WHY IT MATTERS

Imposes rent control on all properties including single-family homes by eliminating AB 1482 protections.

Rent caps would apply to single-family homes and condominiums.

To stop Proposition 33, CalRHA and its affiliates are asking for your support and contribution to fight this third attempt by the same anti-housing activists behind Propositions 10 and 21 from 2018 and 2020.

CalRHA and its regional associations collectively need to raise a minimum $5 million dollars, so we're all in this together.

All funds raised will go toward the initiative fight. To make a contribution, please scan the QR code.

Thank you for your generosity.

56

$5 MILLION TARGET

DEDICATED FUNDS

SUCCESS TOGETHER

The last rent control fight cost the broader housing industry $80 mi l l i o n d o l l a r s . T h i s o n e will cost even more.

F und s w i ll b e d ep o s i t ed i nt o a d ed i ca t ed a cco unt s p eci fi ca lly fo r fi g ht i ng t he i ni t i a t i v e.

W e d efea t ed b o t h t he 2018 a nd 2020 r ent co nt r o l i ni t i a t i v es . W i th y o ur s up p o r t , w e ca n do i t a g a i n.

OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

1031 EXCHANGES

CREDIT CHECKS

PROPERTY MANAGEMENT SOFTWARE

Financial Designs, Ltd. . . . . . . . . . . . . . . . . . . . . . . 33

ApplyConnect . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

YardiBreeze . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

AIR-CONDITIONING

DECKING

AA Feders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

WATERPROOFING

Cert-A-Roof. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Aztec Appliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Cert-A-Deck . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Resilient Roofing. . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Genie Air Conditioning . . . . . . . . . . . . . . . . . . . . . . 49

LD Steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

SEISMIC RETROFIT / SOFT STORY

APARTMENT ASSOCIATIONS

EARTHQUAKE RETROFITTING & ENGINEERING

ADU1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Southern California Rental Housing Association . 6

ADU1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Optimum Seismic . . . . . . . . . . . . . . . . . . . . . . . . . . 28

APPLIANCE SALES

ENGINEERING

TOWING / PARKING CONTROL / SIGNAGE

AA Feders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

ADU1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Western Towing. . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Aztec Appliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

FENCES/GATES/HANDRAILS

TENANT SCREENING

ASPHALT

LD Steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

ApplyConnect . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

MGB Construction . . . . . . . . . . . . . . . . . . . . . . . . . 38

FINANCIAL / ESTATE PLANNING

TOILETS/SINKS/FAUCETS

BACKGROUND SCREENING

Financial Designs, Ltd. . . . . . . . . . . . . . . . . . . . . . . 33

AA Feders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

ApplyConnect . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

HEATING

UTILITY BILLING

BALCONY INSPECTION

Aztec Appliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Livable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Cert-A-Deck . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Genie Air Conditioning . . . . . . . . . . . . . . . . . . . . . . 49

WATER HEATERS/BOILERS

BATHROOM REMODELING / REGLAZING

KITCHEN REMODELING

AA Feders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

American Bathtub Refinishers . . . . . . . . . . . . . . . . . 3

AA Feders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Aztec Appliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

CABINETS

LEGAL & EVICTION SERVICES

WINDOWS & DOORS

Builders Surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Dennis P. Block & Associates . . . . . . . . . . . . . . . . 40

Newman Windows & Doors . . . . . . . . . . . . . . . . . 11

AA Feders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

XTermite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

SIVAN Windows & Doors . . . . . . . . . . . . . . . . . . . . 42

COIN-OP LAUNDRY SALES

PROPERTY MANAGEMENT

South Coast Windows & Doors . . . . . . . . . . . . . . 60

Aztec Appliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Griswold Real Estate Management . . . . . . . . . . . 50

COLLECTIONS

LRS Property Management . . . . . . . . . . . . . . . . . 39

&

STAIRS

/

MAGNESITE

/

ROOF REPAIRS, MAINTENANCE & INSTALLATION

Dennis P. Block & Associates . . . . . . . . . . . . . . . . 40 Apartment Management Magazine cannot guarantee or be responsible for the products or services offered by advertisers in this publication - AMM 6-1 SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

57

SAN DIEGO GAS & ELECTRIC & 211 PARTNERING FOR YOUR SAFETY

We all need a little help sometimes. During wildfire season, some of us need a little more help. That’s why SDG&E® is working with 211 San Diego to help provide additional customer assistance if a Public Safety Power Shutoff is necessary.

To get connected to community, health, social and disaster services, please call 211 or visit 211sandiego.org.

© 2021 San Diego Gas & Electric Company. Trademarks are the property of their respective owners. All rights reserved.

58

OCTOBER 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

FAM OUS FOR VALUE

aztecappliance

Huge Clearance Center Largest Selection in San Diego Famous quality and value since 1974 Professional Delivery, Installation, & Haul Away Property Management & Commercial Accounts Welcome

100’S OF MODELS AND BRANDS TO CHOOSE FROM! CHECK OUT THE OPEN BOXES, DISPLAY M ODELS, AND DISCONTINUED ITEMS FOR FAMOUS SAVI NGS! Famous for Customer Value since 1974!

Trusted for “On Time” service for 37 Years!

Providing the Multi-Unit Housing community with value and service Experienced Associates to assist you with: Brand name products, sales, selection, and service The Right Product, for the Right Application to Rent that empty unit, or complete your home’s remodel!

Most items available for same-day will call, or order by noon-have it delivered the next day!

LAUNDRY ROOM, REFRIGERATORS & FREEZERS, MATTRE SS SETS, COIN-OPERATED WASHERS, DRYERS, DISHWASH ERS, DISPOSERS, TRASH COMPACTORS, RANGES, OVENS, COOKTOPS, VENTILATION, OUTDOOR APPLIA NCES, WATER HEATERS & ACCESSORIES

We Welcome Residential and Commercial Clients. Serving San Diego since 1974!

4070 Kearny Mesa Road, San Diego, CA 92111 Phone: (619) 236-0616 (ask for Joan) E-Mail:Joan@aztecappliance.com Mon.-Fri. 8:30am-5:30pm Sat 10am-4pm Sat. 10am-4pm

APARTMENT MANAGEMENT MAGAZINES

PRESORTED STANDARD U.S. POSTAGE PAID LOS ANGELES, CA PERMIT #1831

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